ANGO - Earnings call transcript Q3 2020

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Operator

Good morning, and welcome to the AngioDynamics Fiscal Year 2020 Third Quarter Earnings Call. At this time, all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation. [Operator Instructions].

As a reminder, this conference is being recorded.

the this third on morning website. detailing the results the release earlier wire and news fiscal quarter XXXX crossed company’s The is available conference at www.angiodynamics.com. over broadcast Investors This of also at section website Internet the live company’s the is call the being approximately replay call. site hour the the webcast be at end the of And after will the call available same one today's of

forward-looking annual Form of Form will like gross most which begin, to caution XXXX. listeners with adjusted cause well from actual or as for course report I XX-Q identify make future as may the review the the February to company or statements. forward-looking including the most results would on specific limitation revenue, to encourages company’s SEC, regarding Management including XX-K, this XX, we margins recent without events, call, quarter filings to past the Before those during conference the expected year events ending future the that statements described and XXXX, statements projections in that the you materially factors for about recent fiscal differ and earnings, company's

morning's company's results slide results & should section into A insight company's also call. operating performance in conjunction under conference the read this Investors release be offering on the available and Presentations. press the of financial discussing website package company's presentation the is Events This the during with financial

Clemmer? President now Chief I'd the turn Mr. over Clemmer, like to and Jim call Executive Officer. to AngioDynamics'

Jim Clemmer

XXXX everyone. call. third us and for AngioDynamics' Thank fiscal joining morning good you earnings thank Melissa, you, And quarter for

Vice of Officer, will today's quarter performance. our call provide is a Executive President Chief and Financial analysis on who Joining third financial detailed Steve Trowbridge, me AngioDynamics'

third our will third results of the to the pandemic call, and at our Given discussing that our approach facts moving and through respect existed results during the we will as customers, our company forward. lens COVID-XX this business quarter, and With they to I take assessing discuss the Steve tailored perspectives on quarter is having a the our on impact time. the that

With acknowledging situations respect looking will while facts, term. and to of through they that circumstances, today, our short business forward, likely our everyone the the discuss dynamic, the medium perspectives facts remain exist and highly to and the significantly we are for as and change fluid in lens moving

With provide to as company. that an of quarter of our now execution on said, like commentary the operating the some highlights for as our overview pandemic and on impacts the I’d well COVID-XX

solid quarter. strong performance a reported quarter. the had third during top-line We We

increased businesses. by Our X.X% Asclera, revenue and three increased year-over-year and it X.X% of all in our driven when excluding growth was

those we In we We delivered share. disciplined into that in our pleased ability are spending. transformation addition, to this our businesses report simultaneously per EPS about invest demonstrates fuel while of our clearly will growth a believe and company that thoughtful adjusted to $X.XX being overall

unique into We evidence a provide solutions faster believe markets. growth focused into transformation successful ongoing innovative medical our these healthcare and of delivering technology company larger results continued and more

three and on transformation: and and drivers expansion. M&A; to development; regulatory focused Internal During remained clinical continue the quarter, we this pathway research

Let me accomplishments in on these areas. each update you of our

with platform X.X internal AngioVac research expanding NanoKnife and launched our you we while our focus through X.X, on the our to had we seeking that key R&D AngioVac, announced spoke and to the focused investments we and products. AURYON, ways continued commitment other about On Earlier of profile three front, profitability technologies: the continue AngioVac development. increase and NanoKnife, we to out year, this

look XX the forward you future. and I'm happy developments in we that remain next these new months to sharing AngioVac the XX to in say to to track with two we deliver on products

launch in through three market the building the a advance In strong and and we towards proper primary commercial programs; Ensuring activities, and training marketing this robust dedicated M&A areas: AURYON and chain; to physician and recent investment sales supply way. terms to the building in continue selling our progress channel of product take a Technology to

our system customers is our an location new term acquired continue role Additionally, product. of nicely, CX play and begun medium Wave this the already transformation. express PICC recently have M&A in the integration over tip and to interest important will to progressing in long

pandemic. clearly are COVID-XX due global uncharted we However, the territory to in

continue we'll we of our maintain also opportunities, While prioritize will of the macroeconomic sheet we M&A climate. targets identifying our balance amid will appropriate disciplined to approach rapidly evolving and strength assess this

liquidity on position Steve our call. more and provide the later in details will perspectives

with am will of that I backdrop, in opportunities M&A that comfortable respect we the saying heightened uncertainty. conservative Given to environment be more current

the -- clinical our are two of most and transformation. quarter important and which data regulatory to is on our transformation to expansion driver third strategic underway: like third The pillars foundational our update I'd DIRECT. PATHFINDER and generation, you efforts

current the critical and CMS obviously been throughout flexibility. preserve environment hospitals have While to With additional seeking activities capacity, procedures on seeking initiation we the areas, enrollment site paused. both efforts to in DIRECT country focus requires and and and to treatment continue patient prioritize care these PATHFINDER

us working in to quickly to be do these internally as a are as possible, the position up once We situation so. ramp to efforts allows

pilot products I differentiate believe scientifically results excellent patients efficacy backed that competitive valuable, System. study to space In to of Registry, from the the to mid-January, build AURYON PATHFINDER this in and the the We IDE. study provide upon this evaluate will during long-term we and system Atherectomy our experienced launched data AURYON the safety a further

the The third NanoKnife DIRECT solid IDE saw through progress quarter.

IRB study the committed to XX institutions leading in have secured at with which very study our today, comprehensive securing IRB clinical approval. remain have of pace As approval. pleased sites We

call our on business. Steve, over COVID-XX to like to I impacting turn the pandemic update an Before the provide is currently I'd how

to products Our save working so a have that effectively. help available manufacturing office-based employees ensure doing standpoint, and are we the are employees and to From manufacturing efficiently remotely lives. on floor our

protect contingency had in we've while the the our ensure continuity of our pandemic, place, protect uninterrupted. Given care chain and and they production that had to we've also we've supply to ones products new while create this critical some nature of our business to continues plans effectively implemented that employees help

challenges, terrific In order hospital the to remote reps we the sales caring focus safety, global They've a interest providing for help these our customers, reduce transmission up in of to in on request of our field the Despite our and team. based and with resources to patients grounded have support at COVID-XX. their customers. of done very of adjusting our proud free all job of I'm virus

we development action once into been customers to that planning, proactive elective We spring CRM are are around very prepared and have activities and resume. have our ready business so procedures

to great continue build We and we this have heading upon we're whenever sure had momentum exit be momentum that to as be. want to into may we that ready

the for on the From fourth X.X. growth that of procedures past have COVID-XX saw critical by line. necessary have care sides the days over driven to into we the a procedural their during seen strong of few includes business AngioVac and patients. But slow focus preparing AngioVac weeks, quarter, third early impact hospitals fall rightfully shifted both products the perspective, as our cases and quarter

past of quarter. procedures, the EVLT and the this some even will anticipate that in be softer We some their weeks. fourth We have slowing business seen couple labs doors closing of in

line straddling are acute the elective and like. procedures between Oncology

laser still with others to Atherectomy been delays. delays, are planned, cancellations, continuing continue, trend have expect that do proceed things some We stage. the AURYON seeing early ramp as treatments Laser cases not in of with patients believe our are We with proceeding other procedures these will and up that very patches and consistent as are in procedures this the majority with.

And our of new a few the ports and couple agreement midlines driven new extensions by our sales strong, our PICCs, even PICCs. with including Premier lastly, over weeks, of line VA products, for past remained and

steps While taking as unprecedented, the of environment prioritize health time. employees is are are both to for that safety in ourselves ensuring and necessary continued also returns we normal certainly innovation our we the while over the to current environment positioning the

Officer. I'd and to Chief Financial like Vice call With turn that, President our to Trowbridge, Steve over the Executive

Steve Trowbridge

Thanks, morning, everyone. Jim. And good

will our With time. results that we looking key I'd to Jim that like looking to earlier, respect I business at through mentioned respect the presentation that exist lens year-to-date with existed Before results. they quarter, our as through and forward, like third the today. discuss facts we website the of you the quarterly Relations begin, to moving associated facts is of our our summarizing they our to perspectives the something reiterate the I'd items to on which the point Investor as lens with discuss will

NAMIC year of divested all unless and Additionally, contribution at ended management exclude of comparisons results end fluid year our the fiscal otherwise our XX, business, which May XXXX. we noted, the prior

year-over-year X.X% increased XXXX fiscal of quarter third $XX.X the for sales net Our million. to

during Excluding we the quarter Asclera the sclerotherapy contribution fiscal XXXX was revenue third products, distributing the fourth of the quarter XXXX, year which fiscal X.X%. from revenue for stopped

mentioned Jim and all As and posted as products. ports by the by solid as businesses growth of core, earlier, AngioVac our quarter NanoKnife, our led PICCs performances strong during well three

growth of our increased products. year-over-year, by and were higher and growth and volume core AngioVac, volume XX% in the ports, quarter, quarter XX.X% growth. VIT remained quarter revenue midlines. our strong,with AngioVac PICCs, XXth Asclera of driven procedures X.X% during which a total sales grew Vascular of representing straight Our consecutive double-digit XX.X% Access business by year-over-year increasing excluding when double-digit and of revenue procedural second up grew year-over-year, of sales driven XX%

with we continue location Wave business on and together during of relationship seeing system, this are entered a our acquired the our already tip integrate We PICC third value distribution product quarter. to impact CX recently PICC positive

sales including driven strong disposable X.X% oncology our growth the sales radiofrequency year-over-year, growth which capital product NanoKnife as somewhat both well XX% capital from from NanoKnife, million This grew in our BioSentry Revenue in XX%. NanoKnife Total growth of Total was our and related $X.X quarter. businesses. disposable as sales. a sales and primarily was business increased decline performance in of softness in offset of to continued balloon sales the were anticipated by by ablation

income year of a XX our driven by ago, quarter the mix. gross to was for margin basis Moving XXXX statement, down fiscal product third primarily a the compared XX.X%, points of decrease

during quarter, As last this we with in our our call was discussed decrease expectations. line

XX.X% third or compared ago. million XXXX development of and quarter to sales the research a were $X.X expenses of fiscal or XX% Our during year $X.X million of sales,

further other R&D AURYON clinical in strategically invest businesses. and on driving and NanoKnife, to profitability of continuing products on while with focus focusing our a developing are We AngioVac our

be to we're key And we maintain technologies now $XX related of investment our while million to and acquisition R&D XXXX, other year AURYON. the Eximo Medical, areas. to $XX in million expect investments current environment, In fiscal being investments three environment, in our looking more continued our including the to to prior spend current in between in measured

increased million XXXX between XX.X% ago. $XX.X million fiscal million SG&A to representing anticipate of expense a we of to sales of for current the $XX.X environment, for $XXX to compared the and spend $XXX to SG&A representing year XX.X% million third XXXX. fiscal quarter sales, continued year Prior

We 'XX. a fiscal will of as upcoming well the our product launches as commercial AURYON needed release investments into for heading support

environment, assessing current we an cash spend towards investment technologies. management key eye the continually while our Given are and spend discretionary controllable in with maintaining

income quarter or net compared of million $X.X compared quarter the third $X.X share the in of $X.XX or in adjusted for Our third XXXX. of net year. share, $X.XX $X.X quarter Adjusted the quarter third to million third fiscal was was XXXX the to fiscal in of $X.X million, income last XXXX million adjusted per per of EBITDA fiscal

the In sheet. balance in used began $XX.X of cash, roughly cash XXXX, with and our we operating million to in quarter of $XX.X we third million fiscal Turning activities.

location used During cash the quarter, of million system. fund the acquisition the third $XX Wave of CX tip PICC to we

had XX, and a position a and revolver million we with strong cash with available February position outstanding. a this having equivalents We in environment $XX.X million in capacity. of $XX As entered XXXX, meaningful cash current foundational net debt and cash

current addition, been In We've continued of facility levels keeping anticipation Glens our In to into were our plans. a at have and the end levels out strong fiscal of move the we environment, that are business Medline inventory of on Falls inventory our an aspect eye contact group evolving 'XX. the elevated we of completing and to with environment. in banking longstanding the increase as continuity close sold

continue thoughtful we And them, We're approach are disciplined we our say collections. close that will pleased balance be on a to a continues We're to keep moving. focusing commerce our to taking and while eye on to sheet.

close and paying attention We're also not also we approach, payables. taking a good We positioned are to cynical have to ourselves customer, our be being a while proactive.

current dry this initiated maintaining draw focused we're on in a both our and move, $XX is our a believe and a prudent environment. we We being we position revolver. have position. on strong the Overall, proactive on Consistent liquidity, believe cash with focus in that illustrating powder we'll million approach, of modest solid our and and remain this foundational

now Turning to guidance.

I Jim this on call, we're and third pleased with quarter As results. discussed have our

of In and addition, the encouraged month we on environment. the in light March were of merits sales both in their by own current our

the procedures we However, have and slowdown a last a during weeks. of shift seen in couple

uncertainty, quarter possible or provide the it don't this fourth is we believe reigning guidance time. Given full to year substantiated at

As morning, full year and we're press as guidance. our a release result, this noted in our officially withdrawing issued

However, color into insight to directional I some in market. discuss what provide will the seeing help we're

no state-by-state and and -- with call, changing me. situation As end on discussed recommends basis excuse sight, a firm the throughout this no we’ve both which dynamic, insight firm incredibly national mandates daily on in COVID-XX level a is

The this at twofold. point unknowns primary are

the impact it the have elective the is first and on The pandemic duration COVID-XX will procedures. of

The second potential so reps broad unsure that gain on road of be provide are unknowns far an accurate outcomes are guidance hospitals access range these our time. this allowed get we that unable range will and to given is our offices. back The physicians’ and reaching when and we at is the to to

the April, will As week we saw lines encouraged and anticipate quarter strength majority quarter. continue month of throughout that March. the continue we the had procedural we first a by saw late strong the mentioned we fourth but third declining We're in this through earlier, March into of of which and

is this it this granularity we the on felt provide, more the quarter current we was given important would than to incrementally While share normally context.

As on mentioned once hard allows. through situation be established we're we the QX momentum to that working we build earlier, that positioned and Jim momentum exciting end will of to ensure well and the sustain

call questions. to like to for call operator I'd to that, the the With the back turn open

Operator

a we'll this question-and-answer time, At be [Operator Instructions]. session. conducting

proceed Our Bedford with Raymond with Jayson first Please James. question question. line of comes from the your

Jayson Bedford

us was, of port And a on value agreement a few Can and strength, strength with just could of so business? you little would distribution and little the business. quarter the the impact as Premier that drivers agreement you was surprised on if Access questions. little PICC maybe detail what of sort I detail be in quantify that also the a more from mentioned a some I the give unclear the just the to was So helpful? Vascular kind in on the you

Jim Clemmer

so this Hi in port agreements Jason, conversion mentioned that But the customers us well. strength it are two only was of quarter. Because us. important Premier morning. good part wasn't family VA on was in more quarter for your we signed the Hope you during win get are of saw our compliant as and really Premier fall, the getting those to the A couple we the the on start the piece and with processes. of things, business business,

there, but the growth balanced. a growth was news was was not Good So, some there whole lot.

also that and talked of to that valuable the over have hospitals so and a up provide and about their a past are technique a our strong mobile they been have that, many Jayson, that committed share mobile looking teams. a or lot but And we service these the year some procedure markets partners base of to to our it, BioFlo PICCs, as business. our gaining of partners PICC so good to haven't outsource these building PICC business, experienced lot we non-BioFlo these BioFlo really market and So in partners both couple PICC quarter,

choose most cases. they again, BioFlo those in of So

portfolio. our add talked about bit new it did some little around a PICC products. just finally, And We’ve we

As PICC PICC had BioFlo, you high we we with but a know, unique end some gaps capabilities, in have our with line.

So couple just the some we of filled other with in gaps a products.

to Jayson, we we grow expect year. guided business VA that the in areas last the

takes system. about this As bit know, that it portfolio XXXX tip same very that many, a first that's one made anticipated Again, now, the there. a more growth Wave well the level more going think and balanced. the of business was of run, year and we’ve location you CX forward, it'll in And out is we we growth year. acquisition And had be I the barrier

Steve Trowbridge

did and Jayson, mentioned It was third pretty quarter. the midlines Jim balanced, And PICCs, growing. dialysis strength the businesses throughout we see as with portfolio ports, throughout VA our all

in we So Jim bit a in the in that talked lines. the little hit on mentioned value remarks. the CX about, PICC We've filling gap those prepared

expect point really about adding see navigation talked we don't from the to until a to we big before, we're get CX that inflection we where As to technology. potential

in the strength as base we and moving head quarter. continuing this fourth strength throughout seen we've we in that into quarter, business the PICCs see So third

business Jim his So fall between or line can delayed, critical critical and the one see of expect are to of talked fourth We’ve and acute that on drawing clearly remarks about those that on care, seeing we the care. was that our things that in we're that throughout that strength products been and PICCs, elective falling line the like midlines in that that be clearly those those VA continue quarter.

Jayson Bedford

Okay.

guess at next you seems summarize point, I that for the saw So quarter just few growth to quarters? pretty Steve, the durable, least that this

Steve Trowbridge

We believe yes. so,

Jayson Bedford

And the you dynamic Is expect back out. rep us you unclear get I'll a in Can as AURYON COVID, then the I'm and just just status full I'll just ask build complete? more, the queue. a with Okay. of commercial then do launch on when that update to little one here? Given launch? the

Jim Clemmer

point. business months the owned AURYON Eximo we've that good Jayson, now six and product. the So It’s

out. build as were: first supply of the three told before, you parts move chain we A, So, the

and chain. our manufacturing catheters and manufacturing now disposable to specs chain. our laser we're supply our We're specs also our hardware supply the the now So to

done the training our in has well, six partners communicate to we to prepared built. great we’ve job those a physician was those already team the a communicated months a building sales commercial and with dedicated chain two, Number supply to so program program. our number three the we as training We've team needed quality this out. as And last done finally, build fields. So,

to So have sales their dedicated have XX hired. today, probably over working for in the of reps. are we life in of have this Each companies those XX space. field business, AURYON They past been this experience those other people dedicated people of one and

relationships experienced performance in, have we've already are from areas in good we expect and hired field, the salespeople. They folks these that So, them. atherectomy in them their

though closer give a little As we get more when more to full launch, add we'll we'll then Jayson, as you timeline people. to

we're at we'd a not with right So yet. full where on be launch We're process. this track

what on we've excited learned. we're So,

As product, a we'll and next the in of you we around share speakers about of deep more presence, soon get the little little and breath, a as the it how received phase talking COVID-XX bit it being market. launch. take details podium the situation, we through this can with how it's includes But works

Jayson Bedford

Meaning say everything the product? but -- you COVID COVID able over want Once Is this gating I the relaxes, launch once to factor here? is to be will don't

Jim Clemmer

hasn't I our plans. think -- changed don't Jayson COVID

building But disciplined at keep COVID around of I spending to is responsible of you. a and going we've told be to the story. really slowed start bought think those we share three excited Really I we some there. month make we last our making down part sure before team down expected building the more here we and weeks, in sheet. slowed AURYON going couple pace to areas. It's can't about balance with we're wait are and our you the a we're a story the of management with even not guys In we cash the needed to investments we're the when window fashion, we just it, six launch.

Jayson Bedford

you. Thank Okay.

Steve Trowbridge

Jayson, in we continue AURYON. to invest

about want we us do to the as cash ready sure ground so, when And management our to we priorities, that. we're make talked allow running that dynamics market hit to

looking the be chain, as some to mentioned, bring current environment delayed we’ve to to as procedures on build during that our in systems are So the go. up atherectomy be the build line, healthcare up while ready that capacity. salespeople, to, supply We continued see do are Jim tending

does be making, original ease the according Jim the plan. said, to hit that bit, to a once we're investments running, So our given we'll ready ground as

Operator

you. Thank

Genuity. line question the next with comes of Mills question. Our from with proceed Jason your Please Canaccord

Jason Mills

for you the taking Thank questions.

extent as abate in read to on The the seeing. a maybe First, would that going question. healthcare procedural wouldn't or about like aren’t which much COVID, thing volumes, what's it’s trying everybody specifically, struck is like as environment you to else we we procedures foot the whether the XX,XXX view current surprising, crisis are vis-à-vis as is us can assume physicians quite to

you So acute strokes, STEMIs, you’re the embolism. even pulmonary into come seeing And mentioned hospitals. strokes fewer ischemic

cases suggest those they’re tend said heard be some physicians commentary do heads physicians and seen cases. delay, this? are scratching that. you’ve saving that you be can't to just you and to You factors Those love I fewer life this their -- that think seeing cases Have your what are they as tend cases. acute well, on to attribute

And embolism, you speak you as the seeing in if will, you country are well parts acute a let follow-up. seeing the play and a participate like guys perhaps you pulmonary have of sort know, are aren't you there any then us where out, into phenomenon normalized the where this hospital? of I of these come that could cases or their trend, As world regionally,

Jim Clemmer

Jason, Jim. your hope and I your you and is healthy family. in office everyone it's

with in to gearing so stand the are the doctors PPE up up to for good other at to ago, a equipment want that three or was weeks but of they caregivers level the COVID-XX had much to because Chief question. down, past hospitals space, just for people some the ICU conversation days that large care for think who they environments. they free need of Jason, they've that time not patients, caring the asked critical the spent free care So up be I I it of had Boston ready for a to to one three so Surgery mentioned,

product saw physician a really and to the in we've slow our we cases some you with seen now received. So and too, mentioned partners AngioVac really dynamic well we've even QX bit. talked But of growth here many down

told I to home, are in cases. think being down many stay physicians stand

Now say treat that our products of knowing severe many you, to the have. we that that the acuity patients

I X ask even soon.” people been with diagnosing week part them have physician and we'll plan. a the go Stage The back we're now an cancers to treatment last home said, past, initial treating had spoke plan, would may In have we or treatment “Jim, to call people with plan you they and of the treatment

Jason, we're for lot to So our think that looking be support them, we, different out customers. of you're our be expectations our that because I to ready may coming like speaking from that, are and this. clarity customers, trying their for, of clarity looking to we're We're support also of a expecting because gain

align to we what our expectations their want We make are can sure resources. with

asked seen a about seen we've think regionally we've the also the You kind around all body that hotspots. of Jason. as pockets or collective the geographic I U.S., In

aside are They've can, I -- thing. not hold Some treatments on guess, depending can really, the are all been of more our of and us kind than severe know when talk the others. cases patient partners about physician all only, let’s we acuity. even bit same doctors telling But U.S. you and as a asked this -- little they off to to step

also are these to think back of treatment and I they treatments for at that up see we're some catch into some point, with to planning some get I speaking now we're have protocol But hospitals a delayed. been going think that

expect believe, point stand to make but going would at longer. people see, the had conversations bit treatment even not they normalized up with just sure to I from we're treat customers, our for So down little who've to can again catch a plan period, one little a I a

sooner maybe outside is are a week couple our partners stories. And or Jason based, of being little of last but even XX% two, global treated revenue us products. telling as the situations so where a maybe our U.S. We've come couple the our Europe, seen have back similar know, in treatments you U.S., people oncology in with of a

Steve Trowbridge

Steve. is Jason, this

You had mentioned pulmonary embolism.

is product embolism Our not current AngioVac pulmonary product. a really

this AngioVac masses -- good remained For this our in our volume quite example right dynamic I in in current tumbling process, valve sales the in used with strong. our seeing specialists we The market volume supporting with the on we play Early a and think vegetation. the early product we're most atrial part tricuspid were AngioVac of is what and environment. are that clinical that procedure March,

so, is, And heart clearly has looking seen we have valve as cases the procedures. that initially we that we were A and that of right on change. at being talked side that trend line those acute about. vegetation necessary the over that continues those line drop that is, the off last have couple a to line weeks or have moved physicians in defined we and where And seen tricuspid

think those on up delays is coming in, their the you that are we product plays procedures do current what about about not as to lost ones Oncology throughout oncology this that which when physicians AngioVac about, back. cases Jim think and build we're that cases, those when the see you But and mostly based capacity. talked another of time, change example procedures are seeing looking

to management space there's to And past, the talked lot pulmonary of as able be that middle AngioVac to be get a embolism extensions the two we done. think entrance space. of we Now, in into the into where Jim thrombus cases that product that allow to the us next mentioned section to and products we we XX the see expect are about months, XX the those in expect to

Jason Mills

the to about those extent, ubiquitously et many will one, not vein side we're able but we're workers the your Is deep or them AngioVac back need the on for with embolism environment? anatomies other we in on And when two and on these with I to macro you two I'm one I targeting, that products. sort elective so hospitals get new micro. we that workers, you're normalized wanted you macro interested some that in Are when bit pulmonary is really sort at other, side, as give way I'd healthcare for as otherwise in and little is some of happening frontline cetera on into is here queue, I furlough they're target back for interesting tackle on procedures. more give? products? to that in COVID, seeing extent can as tackle to be the And as And targets pulmonary as you in And the seeing be before. of before as re-hire or least venous lag the what mentioned, be no of a you're if products getting that willing answered get detail participating other well them would to there's AngioVac and techs, they those as that of is products embolism any the detail be detail generally healthcare a might on discussion new willing take they some separate phenomenon the to sort the maybe you to i.e. on hospitals can quickly thrombosis, enough That to the me that this, two disconcerting macro. the of speaking to lastly, we guess, has society thing just because get interested mean back I'll talk were

Jim Clemmer

things. two So,

So, that again, we're share the for. and of you some for the doing I conversations Jason, how what they’re been consistent but it, the don't is speak exactly which we're I want Because hospital. the getting. with speak I asking tone right it's can and to for pretty you're having caregivers won’t

census because cause seen some we've of are hospitals as So and if they out the us get create I censuses to them hospitals, the think down, that tried COVID-XX the you patients. for furloughs telling the root some to of preparing low, influx home, hospitals patient it's or up more of the very of because move or back they see and ICU some some care that is well, people an try free spaces, of critical

thing We normal that delivering much care and can that it on they they're in. routine that settles, again, They month they get less than to to think standards as people. this customers partners I back ago. So, would a is care people our lower hospital re-hire a need was hope, by operate talking when the to back basis

also to contingency they're doing some too of some to told that of get hospitals. in a rapid of they the planning, fashion. some We I conversations, even doing can how some planning now They contingency of back they're that speak believe us think those

Some go people back go who’ve may down and to little rooms, bit. for schedule treat told us, had they to to their stand people seven-day a in operating a operating

things enough, year. that close think situation. how enough macro to market to all that we're So us we're I the going people ready be to in this generated start to together Jason, when gives will want scale to to are we're treating you’ve hearing we're ready learning normal partner partner already we've and we again hope we that the treat But momentum as of a be their seen people situation, with

products two past We're The publicly. will Now openly ready back all on discuss to question to the AngioVac. the but have in next initial your details, we talked launch. not

time smaller how to that asked the AngioVac for was So AngioVac do. have tip, The And we're our we did things fall version and the is extremely not in partners launched us it which version. naming by probably a next successful. redesigned name X.X better but it's was few other that it, out a we'll physician the funnel that a we comes launched, launch X it

to less can a recovery much you complicated that blood, pump from hey, going Our which same us AngioVac spoke ago, the give clinical few say, maybe you the patient’s on and to features, patient open pathway a and have physicians the sizing to still for X great aspect. Steve allow reperfuse back with up procedure other PE makes get indications areas on I the people circuit to and a We're and that us treat can did so different minutes to them and more the places. with

the and product use pump AngioVac, the of on it want off that circuit other of we've about talked unique unique, really features it's but which is today. we and Now to some take also special the

be the by want chosen we thrombus. in we've with those visit seen physicians patients marketplace of treatment. space be care thrombectomy and a able less selected to acute options a to we mechanical treat And situations lot where being that So people of may as will able be better largest of to

AngioVacoff its be to option other circuit we due some take in in options to is product will would features, a think really, come competitive We We I space. that with. of like of think good really try some the out when other And off with our the think have unique companies a that space. of lot that physicians

we you those XX XX said we to to launch with but months that's when back get expect dates launch. products soon to Jason both of will there we And

Operator

you. Thank

Markets. with next proceed comes KeyBanc of line Please Capital Mishan Our question Matthew question. your with from

Matthew Mishan

I Jim. to switchover just oncology to first. wanted Hey,

XX% outside puts as very short you an Can like area. I first expectation really that the like and about Definitely BioSentry in big you over balloon, it's through of had growth some in NanoKnife, well? the three you fallen thought coming looks where it are just in think takes the and And into of quarters. other numbers coming microwave areas go the the could do negative. you looks year

Jim Clemmer

Yes. Matt, good question.

approach you're A learned So put and now, we've let areas. did as get of about What back registry-based to two course in that we're year these upon speaking work But we hope in in, call could points own I IDE. in this there and too and thought one. we feeling synergies we new all of are sales on aren't are with the our new similar there their we I high What expectations we've now, focus technologies want things. our to as balloons while the these BioSentry upon what much -- learned during much the well. think right based probably technologies of now me well. and I unique how does reps, our set the discussions have couple NanoKnife based bag some in cases, we

Matt what doing So differently. we're

the bag. and commercializing we're are to of that effective and for sales them BioSentry field we've majority used learned Now a handle the care going -- out lessons, creating to patient inside investing of our these going right new now balloons as these conversation. in a got that group We treatment. to better job know do we're products we're and sales we've business But how take to of when

little missed a the we've boat there. So bit

the we So believe to about doing market, missed We're and and our changing We it, we resourcing of you're to clout that are it? the is one those BioSentry. go how think that's giant market offerings two not and it's balloons right. What J&J. Number deeply from number better better have. we Matt and offset we've for What two, than microwave for much companies that some size, I learned microwave. know Medtronic

microwave is our So better.

some same our is way medical guys go a say I a about physicians very big think product. competitors. a if year the but good it ago could these we rate toe-to-toe some that And buying we we I some really thought and not great conversions, were you match still with. do But centers coming the with microwave occurring, versus thought over don't of because thing can know could, at we we if it's as them encouraged Matt up, will we with

We'll market to is Matt will back year time, talk initial Matt. we if to was XX% based how our some sustainably. our launch can thought we ‘XX technology you that the And a we could over on believe know realigning about growth ourselves. really how show So over growth, of What can good do we're conversations. summer to taking step be you pointed probably this the don't the we we're market few Matt whereas course and we plan. I will we microwave we a closer exceed with

expectations going for that's to we're So down why product. our that bring own

a support with to that great are customers to people of then the the making and choosing resources registry, so we received. already But we're to do nicely sure growth, product. grow going NanoKnife, those cusp It'll final successfully it’s so. more market, has And our enter then shift support to the X.X version seen how on data treat there our collect been we've NanoKnife

after either got encouraging NanoKnife new NanoKnife new record to platform. cath three sold Matt, upgrades us. or quarters further. to this platform. go of seen to That's But the step one love amounts People You've we really we've in pump

use also and effective, complicated it's really to it's tricky. is but NanoKnife

development of those So are training practices important. and physician

technology We also easier need step frequency the to we IRE. high to called use. And that make It's H-FIRE, NanoKnife or have make design. is to next

want we which to the more next going development we culmination we're H-FIRE, really So put platform, study to to of with as soon we And the organs new years. DIRECT our and use platform developing who see time. NanoKnife maybe of more and more as other help call then we market in the can. maybe want ready that will match think platform this nicely of support a a and time and we We And people couple treat to to is easier that's use. up have over get to to

and we're out I of where missed, some going Matt it there, missed you So a about gave you doing why showing we but lot what forward. that is we

Matthew Mishan

far you a give could revenue. how you strong very versus numbers as doing and probes you're in us are recurring the how of of the Could sense us NanoKnife, you U.S. just it's that how sense number give as On like a -- of and internationally? with are the -- placements the going the

Jim Clemmer

a of on to more will question. Steve good split has bit look the Steve, geographics Matt. I A maybe a

now balanced recently O-U.S. full been think with I and, the our sale though, products. both these been are we've have Matt, right in of It's that this U.S. those encouraging seen capital bought some a systems, year, expensive U.S. are systems

think in for protocol facilities. I treatment up study be a set part their our now are getting ability the and in DIRECT people them to and interested to of the study

very after reported disposables you first in QX knew just morning carry that saw which this expected. was again, to not as I'm in strong our the as sales be NanoKnife now that this talked hardware QX. it's we So probes, we’ll on to you what we you predict record the don't had disposable told we we selling we earlier year, will kew I how By of of the front on. we quarter half us. this -- in But year, want expectation

Steve Trowbridge

States strength the United States. outside think seeing Matt both we in Yes. And the I and are United

outside XX% U.S. about at particular current breakdown some U.S., seen our the think about Asia-Pac outside the the We've of in area in can You strength the U.S. XX%

EMEA and bit we catch up and trend that a little a a EMEA a modified mitigated big and see we but going bit we've also think by think to I little contributor be that's expect temporary forward.

U.S., globe have as some we by strength throughout well. the definitely seen driven but strength the So O-U.S.

Matthew Mishan

there? you And are that on both, Okay. capable effective of those in and trained make Angio the doing performing to NanoKnife that representative doctors without need the in do room then are salesperson AngioVac or procedure a clinically

Jim Clemmer

the changed as that seeing well question physicians of answer the before recently, in we at interesting the That’s time Matt, terms to been have would yes. from were world our as us what I think both

cases. You specialists those in need clinical

customers clinical world the have case well noticed changed, as has in we've dynamic that that support as specialists both this our As in our very environment. providing been own creative

knowledge by So, I that have. I think our level, there's yes, a think well these specialists as do the high very NanoKnife at that clinical procedures are a provided that procedures, as tremendous answer value and is, complicated they the AngioVac

But forward. of creative new is going procedures they in of think disease do through cases to support. and have some the opportunity our how is seeing an we're for there's that environment what I complexity we And is there manner level in think type the those that dynamic. with we a support the that somewhat products, I the if this states can be differing which in ultimately, of support role be necessary

Matthew Mishan

cash just Okay. then the question last flow. on And

the were net to was on but breakeven able flow million. You income do $XX cash free negative

preserving bit on really you of also managing how guys that how position? that. more inventory you think, much you a And in if the levels -- it's several place quarter capable to while much So, of sheet your really swings, little I are have going have really where drove you color mean, don't current balance you don't business in -- downturn what the how here, know from it

Jim Clemmer

on and that Matt, something last question, absolutely weeks. great the it's a been it's we've Yes, focused four over

you you think feed that hit last at versus points that, would are There a that the I the I think the cash So of that were income. think And talk critically weeks at and net into temporary. the the looking cash several I over are about that we pretty looking temporary. kind flow point in couple change

talked about build. $X million a we of right. $X to build, it, actually in inventory of that's that big million inventory usage was So, part cash the

we were going about we current of into of Falls to out that into talked we Medline environment, the as inventories all increase our planning anticipation sold our lines of Queensbury. moving facility in to Now Glens the

So this you've we potential disruptions had what depending process. R&D was funding were that term the Israeli some production got then to related first there. burn build third in inventory, some at had to be upon a could be, short continued big into inventory of that. a acquired as is additional of our was okay now to off the build There to to the quarter several process, going what as as next we weeks happens, terms in. during coming We AURYON in of The aspects we're that, on aspect backstop you that least want that so focusing

to that'll million TSAs back million little would the was $X some out related activities pull There bit. the cash that $X to the usage of coming of think say timing I was in also a I lot and a divestiture. of disaggregation timing, of Medline

repeat. won't that So

and being NanoKnife. So to we more in we talked like AURYON where want all discretionary invest areas R&D terms in much other our that spend to continue third-party the we earlier spend, on of so cash, products. focusing about in then understanding the lose controlling momentum AngioVac, don't But

bunch a the not can down. other be traveling, T&E close way the of being by eye a we're just The of thing nature on, The that keeping fact in. expense got goes situation up end expenses that very whole that nobody you’ve we're

we we entire illustrate strong So our prudent the looking bit that got this to initiating close that It's we've able need thing on that really that we to feel strength. foundational do. something through then sure we're eye to draw the opportunity to We're at but good make balances that. flow, And to we're little be cash the our keeping not that not downturn. right as draw do this both a time. keep not need, cash the our also We going eye revolvers. to an It’s about position talked a on maintain cash

out cutting So we areas cash the we time repeat that as that first we've about, one-time sure 'XX. by reducing in timing feel pretty FY our of saw to those want maintain and things those And not to QX into comfortable half it's that also we to we'll head expenses make going able maintain be seeing of when into not that. we that our talked then into are that QX, come to of momentum position some

Operator

and our Ladies to I'll question-and-answer turn closing any concludes gentlemen, for Clemmer you. remarks. the Thank session. back Mr. this floor

Jim Clemmer

call for our joining dedication out So I'd us today call. our thank you for commitment like of the three again to quarter and XXXX employees.

four and care. We do. of what to make need make made thought safe it at in those quality and York. internally. high this care manufacturing treatment we people can sure have of Falls, job as products of helping We've first. to They've around working worked changed over done Glens pandemic how we We've that Queensbury their and or We do the today here globe are quality workplace three our New used that are risks weeks their distribution in reduce transmission AngioDynamics, we the and during as people of the commitment manufacturing past with and process a good

results good our of you good group the forward today. highlighting QX uncertainty great We did just a people. some customers. a beyond. We're sharing got And results our job we've I and report of our see we we with So today to proud QX think look from to

we And the We'll committed we’d occurs. company for soon. want that make wellness new share get to and customers, As our when our by you. our I Thank you today, care is as is others. our difficult and employees company belief a that better process. products thank speak thinking But can a the our working driven to happy clarity soon transparency this you through that. from difference of in to with with

Operator

teleconference. concludes you. today's Thank This

Thank participation. time. for You may lines disconnect your your this at you

AngioDynamics (ANGO) 7 Apr 202020 Q3 Earnings call transcript