Exhibit 99.1
FOR IMMEDIATE DISTRIBUTION
| | 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 |
AngioDynamics Reports Fiscal 2016 Third Quarter Results
| · | Net sales of $87.4 million, up 1% year-over-year |
| · | GAAP earnings per share of $0.02; Non-GAAP adjusted EPS of $0.15, up 25% year-over-year |
| · | Operating cash generation of $12.4 million |
| · | FY2016 financial guidance updated |
ALBANY, N.Y., (April 7, 2016) – AngioDynamics (NASDAQ: ANGO), a leading provider of innovative, minimally invasive medical devices for vascular access, surgery, peripheral vascular disease and oncology, today reported financial results for the third quarter of fiscal year 2016 ended February 29, 2016.
“We are pleased with our third quarter performance, including contributions from our key growth drivers, which was reflected in our net sales of $87.4 million, adjusted EPS of $0.15 and free cash flow of $11.7 million,” stated Michael Trimarchi, interim Chief Financial Officer. “The Peripheral Vascular business grew 8%, and included AngioVac growth of 28%. Demand for BioFlo continued during the quarter, which saw growth across all product segments in the Vascular Access business, and now represents 42% of the franchise. In Oncology/Surgery, our higher-margin growth driver products, Microwave and NanoKnife, continued to show procedural and utilization growth offsetting slower capital sales.”
Trimarchi added, “Third quarter results met our expectations, but top-line growth rates continue to reflect ongoing headwinds that we are facing, including competitive dynamics in vascular access, reimbursement challenges and slower growth internationally.”
“I believe there is a strong market opportunity for our products and a solid foundation upon which to grow,” said James Clemmer, President and Chief Executive Officer of AngioDynamics. “My focus will be to put us on a pathway toward sustainable and profitable growth through disciplined execution, efficient resource allocation and value-driven innovation.”
Third Quarter 2016 Financial Results
Net sales for the fiscal third quarter were $87.4 million, an increase of 1% compared with $86.6 million a year ago. On a constant currency basis and excluding the impact of the Morpheus product discontinuance, sales were up 3% compared to the third quarter last year.
The following comparisons exclude the BSC supply agreement.
Peripheral Vascular net sales in the third quarter were $49.8 million compared to $46.2 million in the fiscal year 2015 third quarter. Vascular Access net sales were $24.9 million compared to $26.4 million a year ago. Oncology/Surgery net sales were $12.0 million compared to $13.1 million in the prior year’s third quarter. Overall, net sales in the U.S. were $69.5 million compared to $68.4 million in the 2015 fiscal year third quarter. International net sales were $17.2 million compared to $17.3 million a year ago. On a constant currency basis, international sales grew 3%.
The Company’s net income $0.6 million, or $0.02 on a per share basis, compared to a net loss of $4.3 million, or $0.12 per share, in the third quarter of fiscal 2015. Excluding the items shown in the attached quarterly non-GAAP reconciliation table, adjusted net income was $5.4 million, or $0.15 per share, compared to adjusted net income of $4.4 million, or $0.12 per share, from the year ago third quarter.
EBITDA was $9.5 million or $0.26 per share, compared to a loss of $1.5 million, or $0.04 per share, a year ago. Adjusted EBITDA, excluding the items shown in the attached reconciliation table, was $14.0 million, or $0.38 per share, compared to $13.3 million, or $0.36 per share, in the year ago comparable period.
In the third quarter, the Company generated $12.4 million in operating cash flow. At February 29, 2016, cash and investments were $23.6 million and debt was $126.4 million.
Nine Months Financial Results
For the nine months ended February 29, 2016, net sales were $260.3 million compared to the $266.1 million reported a year ago. The Company’s net loss was $0.5 million, or $0.01 per share, compared to net loss of $2.5 million, or $0.07 per share, reported a year ago. Excluding the items shown in the attached quarterly non-GAAP reconciliation table, adjusted net income was $14.5 million, or $0.40 per share, compared to net income of $16.2 million, or $0.44 per share, a year ago. EBITDA was $26.1 million, or $0.72 per share, compared to EBITDA of $20.0 million, or $0.55 per share, a year ago. Adjusted EBITDA, excluding the items shown in the attached reconciliation table, was $39.2 million, or $1.08 per share, compared to $43.4 million, or $1.20 per share, in the year ago period.
Recent Events
| · | James C. Clemmer appointed new president and chief executive officer, bringing more than 25 years of operational, manufacturing, marketing and business development experience in the global healthcare industry. Mr. Clemmer will also be appointed to the AngioDynamics’ board of directors. |
| · | The company announced a multi-year relationship with Merz North America to Market Asclera for venous insufficiency patients. |
| · | The company received 13 regulatory clearances during the third quarter, including the approval of the Celerity PICC Tip Confirmation System with Navigation in Canada and AngioVac in Australia and New Zealand. |
Fiscal Year 2016 and Fourth Quarter Financial Guidance
The Company restated its FY2016 net sales guidance to $347 to $350 million and adjusted earnings per share (EPS) of $0.54 to $0.58. The Company expects fourth quarter net sales to be in the range of $87 to $90 million and adjusted EPS of $0.14 to $0.18. The company reiterated its FY2016 cash flow guidance of $30 million.
Conference Call
AngioDynamics will host a conference call today at 4:30 p.m. ET to discuss its third quarter results. To participate in the live call by telephone, please call 800-533-7619 and reference the Conference ID: 3916864. In addition, a live webcast and archived replay of the call will be available at investors.angiodynamics.com. To access the live webcast, please go to the website 15-minutes prior its start to register, download and install the necessary software.
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 net sales excluding a supply agreement; adjusted sales growth; EBITDA (income before interest, taxes, depreciation and amortization); adjusted EBITDA; adjusted gross profit; adjusted net income and adjusted earnings per share. Additionally, this press release evaluates results on a constant currency basis. As a non-GAAP measure, constant currency excludes the impact of foreign currency exchange rate fluctuations. 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
AngioDynamics Inc. is a leading provider of innovative, minimally invasive medical devices used by professional healthcare providers for vascular access, surgery, peripheral vascular disease and oncology. AngioDynamics' diverse product lines include market-leading ablation systems, fluid management systems, vascular access products, angiographic products and accessories, angioplasty products, drainage products, thrombolytic products and venous products. More information is available at AngioDynamics.com.
Trademarks
AngioDynamics, the AngioDynamics logo, BioFlo, Celerity, Morpheus, NanoKnife and AngioVac, are trademarks and/or registered trademarks of AngioDynamics Inc., an affiliate or a subsidiary. Asclera is a registered trademark of Chemische Fabrik Kreussler & Co. GmbH.
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,” “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 from AngioDynamics’ expectations. Factors that may affect the actual results achieved by AngioDynamics include, without limitation, 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, 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 integrate purchased 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, 2015 and its quarterly reports on Form 10-Q for the fiscal period ended August 31, 2015 and November 30, 2015. 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
ANGIODYNAMICS, INC. AND SUBSIDIARIES
