Full Press Release Details
ANGIODYNAMICS, INC. AND SUBSIDIARIES
CONSOLIDATED INCOME STATEMENTS
(in thousands, except per share data)
| Three months ended | Twelve months ended | |||||||||||||||
| May 31, | May 31, | May 31, | May 31, | |||||||||||||
| 2017 | 2016 | 2017 | 2016 | |||||||||||||
| (unaudited) | (unaudited) | |||||||||||||||
| Net sales | $ | 86,914 | $ | 93,419 | $ | 349,643 | $ | 353,890 | ||||||||
| Cost of sales (exclusive of intangible amortization) | 44,579 | 51,892 | 173,474 | 179,574 | ||||||||||||
| Gross profit | 42,335 | 41,527 | 176,169 | 174,316 | ||||||||||||
| % of net sales | 48.7 | % | 44.5 | % | 50.4 | % | 49.3 | % | ||||||||
| Operating expenses | ||||||||||||||||
| Research and development | 6,696 | 6,937 | 25,269 | 25,053 | ||||||||||||
| Sales and marketing | 20,476 | 21,104 | 78,819 | 83,743 | ||||||||||||
| General and administrative | 8,316 | 6,791 | 31,406 | 30,583 | ||||||||||||
| Amortization of intangibles | 4,410 | 4,608 | 17,296 | 17,964 | ||||||||||||
| Change in fair value of contingent consideration | 125 | 318 | (15,261 | ) | 948 | |||||||||||
| Acquisition, restructuring and other items, net | 15,482 | 3,493 | 27,510 | 12,591 | ||||||||||||
| Medical device excise tax | (1,837 | ) | - | (1,837 | ) | 2,416 | ||||||||||
| Total operating expenses | 53,668 | 43,251 | 163,202 | 173,298 | ||||||||||||
| Operating income | (11,333 | ) | (1,724 | ) | 12,967 | 1,018 | ||||||||||
| Other (expense), net | (695 | ) | (1,098 | ) | (3,120 | ) | (4,271 | ) | ||||||||
| Income (loss) before income taxes | (12,028 | ) | (2,822 | ) | 9,847 | (3,253 | ) | |||||||||
| Income tax expense (benefit) | 885 | 40,253 | 4,839 | 40,337 | ||||||||||||
| Net income (loss) | $ | (12,913 | ) | $ | (43,075 | ) | $ | 5,008 | $ | (43,590 | ) | |||||
| Earnings (loss) per share | ||||||||||||||||
| Basic | $ | (0.35 | ) | $ | (1.19 | ) | $ | 0.14 | $ | (1.21 | ) | |||||
| Diluted | $ | (0.35 | ) | $ | (1.19 | ) | $ | 0.14 | $ | (1.21 | ) | |||||
| Weighted average shares outstanding | ||||||||||||||||
| Basic | 36,655 | 36,242 | 36,617 | 36,161 | ||||||||||||
| Diluted | 36,655 | 36,242 | 36,959 | 36,161 |
ANGIODYNAMICS, INC. AND SUBSIDIARIES
GAAP TO NON-GAAP RECONCILIATION
(in thousands, except per share data)
| Reconciliation of Gross Profit to non-GAAP Adjusted Gross Profit: | ||||||||||||||||
| Three months ended | Twelve months ended | |||||||||||||||
| May 31, | May 31, | May 31, | May 31, | |||||||||||||
| 2017 | 2016 | 2017 | 2016 | |||||||||||||
| (unaudited) | (unaudited) | |||||||||||||||
| Gross profit | $ | 42,335 | $ | 41,527 | $ | 176,169 | $ | 174,316 | ||||||||
| Recall expenses included in cost of sales | 2,645 | - | 2,861 | (92 | ) | |||||||||||
| Inventory charge included in cost of sales | - | 5,940 | - | 5,940 | ||||||||||||
| Adjusted gross profit | $ | 44,980 | $ | 47,467 | $ | 179,030 | $ | 180,164 | ||||||||
| Adjusted gross profit % of sales | 51.8 | % | 50.8 | % | 51.2 | % | 50.9 | % | ||||||||
| Reconciliation of Net Income to non-GAAP Adjusted Net Income: | ||||||||||||||||
| Three months ended | Twelve months ended | |||||||||||||||
| May 31, | May 31, | May 31, | May 31, | |||||||||||||
| 2017 | 2016 | 2017 | 2016 | |||||||||||||
| (unaudited) | (unaudited) | |||||||||||||||
| Net income (loss) | $ | (12,913 | ) | $ | (43,075 | ) | $ | 5,008 | $ | (43,590 | ) | |||||
| Recall expenses included in cost of sales | 2,645 | - | 2,861 | (92 | ) | |||||||||||
| Inventory charge included in cost of sales | - | 5,940 | - | 5,940 | ||||||||||||
| Amortization of intangibles | 4,410 | 4,608 | 17,296 | 17,964 | ||||||||||||
| Change in fair value of contingent consideration | 125 | 318 | (15,261 | ) | 948 | |||||||||||
| Acquisition, restructuring and other items, net (1) | 15,482 | 3,493 | 27,510 | 12,591 | ||||||||||||
| Tax effect of non-GAAP items (2) | (2,943 | ) | 36,100 | (10,372 | ) | 28,062 | ||||||||||
| Adjusted net income | $ | 6,806 | $ | 7,384 | $ | 27,042 | $ | 21,823 | ||||||||
| Reconciliation of Diluted Earnings Per Share to non-GAAP Adjusted Diluted Earnings Per Share: | ||||||||||||||||
| Three months ended | Twelve months ended | |||||||||||||||
| May 31, | May 31, | May 31, | May 31, | |||||||||||||
| 2017 | 2016 | 2017 | 2016 | |||||||||||||
| (unaudited) | (unaudited) | |||||||||||||||
| Diluted earnings (loss) per share | $ | (0.35 | ) | $ | (1.19 | ) | $ | 0.14 | $ | (1.21 | ) | |||||
| Recall expenses included in cost of sales | 0.07 | - | 0.08 | (0.00 | ) | |||||||||||
| Inventory charge included in cost of sales | - | 0.16 | - | 0.16 | ||||||||||||
| Amortization of intangibles | 0.12 | 0.13 | 0.47 | 0.49 | ||||||||||||
| Change in fair value of contingent consideration | 0.00 | 0.01 | (0.41 | ) | 0.03 | |||||||||||
| Acquisition, restructuring and other items, net (1) | 0.42 | 0.10 | 0.74 | 0.35 | ||||||||||||
| Tax effect of non-GAAP items (2) | (0.07 | ) | 0.99 | (0.29 | ) | 0.78 | ||||||||||
| Adjusted diluted earnings per share | $ | 0.19 | $ | 0.20 | $ | 0.73 | $ | 0.60 | ||||||||
| Adjusted diluted sharecount | 36,655 | 36,391 | 36,959 | 36,372 |
| (1) Includes costs related to mergers and acquisition activities, integrations, restructurings, asset impairments and write-offs, litigation, and other items. |
| (2) Represents the net tax effect of non-GAAP adjustments. Based on our historical non-GAAP earnings, our tax effect of non-GAAP items has been calculated assuming no valuation allowance on our deferred tax assets and an effective tax rate of 36%. |
ANGIODYNAMICS, INC. AND SUBSIDIARIES
GAAP TO NON-GAAP RECONCILIATION (Continued)
(in thousands, except per share data)
| Reconciliation of Net Income to EBITDAS and Adjusted EBITDAS: | ||||||||||||||||
| Three months ended | Twelve months ended | |||||||||||||||
| May 31, | May 31, | May 31, | May 31, | |||||||||||||
| 2017 | 2016 | 2017 | 2016 | |||||||||||||
| (unaudited) | (unaudited) | |||||||||||||||
| Net income (loss) | $ | (12,913 | ) | $ | (43,075 | ) | $ | 5,008 | $ | (43,590 | ) | |||||
| Income tax expense | 885 | 40,253 | 4,839 | 40,337 | ||||||||||||
| Interest expense | 689 | 789 | 2,860 | 3,396 | ||||||||||||
| Depreciation and amortization | 6,276 | 6,706 | 24,444 | 27,636 | ||||||||||||
| Stock-based compensation | 1,105 | (1,260 | ) | 6,183 | 3,240 | |||||||||||
| EBITDAS | (3,958 | ) | 3,413 | 43,334 | 31,019 | |||||||||||
| Recall expenses included in cost of sales | 2,645 | - | 2,861 | (92 | ) | |||||||||||
| Inventory charge included in cost of sales | - | 5,940 | - | 5,940 | ||||||||||||
| Change in fair value of contingent consideration | 125 | 318 | (15,261 | ) | 948 | |||||||||||
| Acquisition, restructuring and other items, net (1,2) | 15,482 | 3,493 | 27,510 | 11,590 | ||||||||||||
| Other expense, net | 6 | 309 | 260 | 875 | ||||||||||||
| Credit card fees | 710 | 689 | 2,809 | 2,794 | ||||||||||||
| Adjusted EBITDAS | $ | 15,010 | $ | 14,162 | $ | 61,513 | $ | 53,074 | ||||||||
| Per diluted share: | ||||||||||||||||
| EBITDAS | $ | (0.11 | ) | $ | 0.09 | $ | 1.17 | $ | 0.85 | |||||||
| Adjusted EBITDAS | $ | 0.41 | $ | 0.39 | $ | 1.66 | $ | 1.46 | ||||||||
| (1) Includes costs related to mergers and acquisition activities, integrations, restructurings, asset impairments and write-offs, litigation, and other items. | ||||||||||||||||
| (2) Excludes depreciation expense captured in the depreciation and amortization component of the reconciliation. |
ANGIODYNAMICS, INC. AND SUBSIDIARIES
NET SALES BY PRODUCT CATEGORY AND BY GEOGRAPHY
(unaudited in thousands)
| Three months ended | Twelve months ended | |||||||||||||||||||||||||||||||||||||||
| Currency | Constant | Currency | Constant | |||||||||||||||||||||||||||||||||||||
| May 31, | May 31, | % | Impact | Currency | May 31, | May 31, | % | Impact | Currency | |||||||||||||||||||||||||||||||
| 2017 | 2016 | Growth | (Pos) Neg | Growth | 2017 | 2016 | Growth | (Pos) Neg | Growth | |||||||||||||||||||||||||||||||
| Net Sales by Product Category | ||||||||||||||||||||||||||||||||||||||||
| Peripheral Vascular | $ | 53,948 | $ | 55,584 | -3% | $ | 208,602 | $ | 205,620 | 1% | ||||||||||||||||||||||||||||||
| Vascular Access | 24,243 | 24,799 | -2% | 96,481 | 99,375 | -3% | ||||||||||||||||||||||||||||||||||
| Oncology/Surgery | 8,723 | 13,036 | -33% | 44,560 | 48,895 | -9% | ||||||||||||||||||||||||||||||||||
| Total | $ | 86,914 | $ | 93,419 | -7% | 0% | -7% | $ | 349,643 | $ | 353,890 | -1% | 0% | -1% | ||||||||||||||||||||||||||
| Net Sales by Geography | ||||||||||||||||||||||||||||||||||||||||
| United States | $ | 70,847 | $ | 75,614 | -6% | 0% | -6% | $ | 282,168 | $ | 285,824 | -1% | 0% | -1% | ||||||||||||||||||||||||||
| International | $ | 16,067 | $ | 17,805 | -10% | 2% | -8% | 67,475 | 68,066 | -1% | 2% | 1% | ||||||||||||||||||||||||||||
| Total | $ | 86,914 | $ | 93,419 | -7% | 0% | -7% | $ | 349,643 | $ | 353,890 | -1% | 0% | -1% |
ANGIODYNAMICS, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
| May 31, | May 31, | |||||||
| 2017 | 2016 | |||||||
| (unaudited) | ||||||||
| Assets | ||||||||
| Current Assets | ||||||||
| Cash and cash equivalents | $ | 47,544 | $ | 32,333 | ||||
| Marketable securities | 1,215 | 1,653 | ||||||
| Total cash and investments | 48,759 | 33,986 | ||||||
| Accounts receivable, net | 44,523 | 52,867 | ||||||
| Inventories | 54,506 | 55,370 | ||||||
| Prepaid income taxes | 336 | 788 | ||||||
| Prepaid expenses and other | 5,790 | 3,243 | ||||||
| Total current assets | 153,914 | 146,254 | ||||||
| Property, plant and equipment, net | 45,234 | 48,284 | ||||||
| Other non-current assets | 1,886 | 3,827 | ||||||
| Intangible assets, net | 145,675 | 166,577 | ||||||
| Goodwill | 361,252 | 361,252 | ||||||
| Total Assets | $ | 707,961 | $ | 726,194 | ||||
| Liabilities and Stockholders' Equity | ||||||||
| Current Liabilities | ||||||||
| Accounts payable | $ | 18,087 | $ | 15,616 | ||||
| Accrued liabilities | 38,804 | 21,942 | ||||||
| Current portion of long-term debt | 5,000 | 16,250 | ||||||
| Current portion of contingent consideration | 9,625 | 12,919 | ||||||
| Total current liabilities | 71,516 | 66,727 | ||||||
| Long-term debt, net of current portion | 91,320 | 104,291 | ||||||
| Deferred income taxes, long-term | 26,112 | 21,684 | ||||||
| Contingent consideration, net of current portion | 3,136 | 25,356 | ||||||
| Other long-term liabilities | 850 | 908 | ||||||
| Total Liabilities | 192,934 | 218,966 | ||||||
| Stockholders' Equity | 515,027 | 507,228 | ||||||
| Total Liabilities and Stockholders' Equity | $ | 707,961 | $ | 726,194 |
ANGIODYNAMICS, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
| Three months ended | Twelve months ended | |||||||||||||||
| May 31, | May 31, | May 31, | May 31, | |||||||||||||
| 2017 | 2016 | 2017 | 2016 | |||||||||||||
| (unaudited) | (unaudited) | (unaudited) | (unaudited) | |||||||||||||
| Cash flows from operating activities: | ||||||||||||||||
| Net income (loss) | $ | (12,913 | ) | $ | (43,075 | ) | $ | 5,008 | $ | (43,590 | ) | |||||
| Adjustments to reconcile net income (loss) to net cash provided by operating activities: | ||||||||||||||||
| Depreciation and amortization | 6,356 | 6,826 | 24,811 | 28,115 | ||||||||||||
| Stock-based compensation | 1,105 | (1,260 | ) | 6,183 | 3,240 | |||||||||||
| Change in fair value of contingent consideration | 125 | 318 | (15,261 | ) | 948 | |||||||||||
| Loss on impairment of intangible assets | - | 384 | - | 384 | ||||||||||||
| Fixed and intangible asset impairments and disposals | 108 | 131 | 3,930 | 806 | ||||||||||||
| Deferred income taxes | 804 | 40,371 | 4,428 | 39,983 | ||||||||||||
| Change in accounts receivable allowance | 292 | 1,022 | (313 | ) | 2,377 | |||||||||||
| Write-off of other assets | - | - | 2,685 | - | ||||||||||||
| Other | (51 | ) | 90 | (586 | ) | 90 | ||||||||||
| Changes in operating assets and liabilities, net of acquisitions: | ||||||||||||||||
| Receivables | 1,581 | 639 | 8,479 | 3,131 | ||||||||||||
| Inventories | 3,272 | 10,519 | 687 | 11,976 | ||||||||||||
| Prepaid and other assets | (2,305 | ) | 1,494 | (3,520 | ) | 712 | ||||||||||
| Accounts payable and accrued liabilities | 20,619 | 1,085 | 19,214 | (2,956 | ) | |||||||||||
| Net cash provided by (used in) operating activities | 18,993 | 18,544 | 55,745 | 45,216 | ||||||||||||
| Cash flows from investing activities: | ||||||||||||||||
| Additions to property, plant and equipment | (743 | ) | (431 | ) | (3,001 | ) | (2,326 | ) | ||||||||
| Acquisition of warrants | - | - | - | (2,000 | ) | |||||||||||
| Acquisition of intangible assets | - | (3,250 | ) | - | (3,268 | ) | ||||||||||
| Proceeds from sale or maturity of marketable securities | - | - | 450 | 25 | ||||||||||||
| Net cash provided by (used in) investing activities | (743 | ) | (3,681 | ) | (2,551 | ) | (7,569 | ) | ||||||||
| Cash flows from financing activities: | ||||||||||||||||
| Repayment of long-term debt | (1,250 | ) | (5,000 | ) | (140,381 | ) | (16,250 | ) | ||||||||
| Proceeds from issuance of long-term debt and revolver borrowings | - | - | 116,471 | - | ||||||||||||
| Deferred financing costs on long-term debt | (29 | ) | - | (1,364 | ) | - | ||||||||||
| Payment of Contingent Consideration | - | - | (9,850 | ) | (9,850 | ) | ||||||||||
| Repurchase of shares | (5,717 | ) | - | (13,557 | ) | - | ||||||||||
| Proceeds from exercise of stock options and ESPP | 429 | 504 | 10,698 | 2,437 | ||||||||||||
| Net cash provided by (used in) financing activities | (6,567 | ) | (4,496 | ) | (37,983 | ) | (23,663 | ) | ||||||||
| Effect of exchange rate changes on cash | 290 | 69 | - | (42 | ) | |||||||||||
| Increase (Decrease) in cash and cash equivalents | 11,973 | 10,436 | 15,211 | 13,942 | ||||||||||||
| Cash and cash equivalents | ||||||||||||||||
| Beginning of period | 35,571 | 21,897 | 32,333 | 18,391 | ||||||||||||
| End of period | $ | 47,544 | $ | 32,333 | $ | 47,544 | $ | 32,333 |
ANGIODYNAMICS, INC. AND SUBSIDIARIES
GAAP TO NON-GAAP RECONCILIATION
| Reconciliation of Free Cash Flows: | ||||||||||||||||
| Three months ended | Twelve months ended | |||||||||||||||
| May 31, | May 31, | May 31, | May 31, | |||||||||||||
| 2017 | 2016 | 2017 | 2016 | |||||||||||||
| (unaudited) | (unaudited) | |||||||||||||||
| Net cash provided by (used in) operating activities | $ | 18,993 | $ | 18,544 | $ | 55,745 | $ | 45,216 | ||||||||
| Additions to property, plant and equipment | (743 | ) | (431 | ) | (3,001 | ) | (2,326 | ) | ||||||||
| Free Cash Flow | 18,250 | 18,113 | 52,744 | 42,890 |