Thursday, October 10, 2013 5:08:19 PM
4:01 PM ET 10/10/13 | Dow Jones
AngioDynamics Reports Fiscal 2014 First Quarter Financial Results
-- Net sales of $83.6 million
-- GAAP net loss of $0.01 per share; Non-GAAP adjusted net income of $0.04
per share; Non-GAAP adjusted net income excluding amortization of $0.12
per share
-- Adjusted EBITDA of $11.3 million
-- Operating cash flow of $7.3 million versus prior year $5.6 million cash
use
-- Company raises FY 2014 guidance for revenue and adjusted EPS excluding
amortization
ALBANY, N.Y., Oct. 10, 2013 (GLOBE NEWSWIRE) -- 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 fiscal 2014 first quarter ended August 31, 2013.
"Our growth drivers performed at, or above, our expectations in the first quarter, demonstrating the value in our strategic initiatives and ability to expand market opportunities for our products," said Joseph M. DeVivo, President and Chief Executive Office. "Our sales team is approaching the market with solutions, including our AngioVac cannula and circuit, and growing BioFlo portfolio, that are valued by the healthcare industry not only for their potential to improve patient outcomes, but also for reducing overall treatment costs. Early data following the commercialization of our BioFlo PICCs has shown the capability to dramatically reduce PICC-related upper extremity deep vein thrombosis -- a problem that is estimated to cost hospitals more than $1 billion annually. The market's response and product results are encouraging, and coupled with other positive developments, supports our expectation of accelerated growth commencing in the fiscal 2014 second half."
Q1 FY14 Financial Results
Net sales of $83.6 million were flat with last year's first quarter net sales of $83.4 million. Excluding the planned wind down of the supply agreement with Boston Scientific, sales in the quarter grew by 1% compared to the prior year period.
Peripheral Vascular net sales in the first quarter increased 5% to $45.5 million compared to $43.2 million in the prior year period. Vascular Access net sales declined 5% to $25.3 million compared to $26.6 million in the year ago quarter. Oncology/Surgery net sales of $11.2 million were similar to the year ago quarter. Supply agreement sales of $1.6 million in this fiscal year's first quarter declined from $2.3 million in the prior year period.
Net sales in the U.S., excluding the supply agreement, increased 2% to $67.1 million from $65.6 million in the prior year period. International net sales decreased 5% to $14.8 million from $15.6 million a year ago.
The Company's net loss in the first quarter was $0.4 million, or $0.01 per share, compared to a net loss of $0.7 million, or $0.02 per share, a year ago. Excluding the items shown in the attached quarterly non-GAAP reconciliation table, adjusted net income was $1.3 million, or $0.04 per share, compared to $3.5 million, or $0.10 per share, a year ago. Excluding amortization, the Company's adjusted EPS was $0.12 for the first quarter of fiscal year 2014 compared to $0.16 for the year ago quarter. Current year results include a $0.02 impact of the Medical Device Tax, which was not applicable in the prior year period.
First quarter EBITDA grew to $7.4 million, or $0.21 per share, compared to EBITDA of $6.6 million, or $0.19 per share, a year ago. Adjusted EBITDA, excluding the items shown in the attached reconciliation table, was $11.3 million, or $0.32 per share, compared to $14.3 million, or $0.41 per share, in the year ago period.
During the first quarter, operating cash flow improved to $7.3 million compared to $5.6 million of net cash used in the prior year quarter. At August 31, 2013, cash and investments were $24 million, and debt was $142.5 million. On September 24, 2013, the Company announced that it amended its existing credit facilities and successfully refinanced its long-term debt. This will improve the Company's capital structure by reducing interest expense by over $1 million per year, increasing the Company's future cash flow and providing greater flexibility to support the execution of its growth strategy.
Recent Operational Highlights
-- The U.S. Food and Drug Administration granted 510(k) clearance for the
Company's BioFlo port with Endexo technology which is designed to reduce
the accumulation of catheter-related thrombus on, and in, the port
catheter. Additionally, the Company expanded its agreement with Interface
Biologics, the creator of the Endexo technology in AngioDynamics' BioFlo
devices, to include central venous catheters.
-- The Company signed a sole-source, three-year agreement with the Large
Integrated Delivery Network Group (LIDN) -- a group formed by eight IDNs
from large Premier, Inc. member healthcare systems. Under the terms of
the agreement, effective November 1, 2013, AngioDynamics' entire port
line, including its new BioFlo ports, will be available to approximately
130 hospitals in the group. AngioDynamics continues to build on its
GPO/IDN strategy, bolstered by the success of its BioFlo platform, which
was recently showcased at the Novation Innovation Technology Expo and
MedAsset's 2013 Technology and Innovation forum.
-- The first patient was enrolled at Academic Medical Center, Amsterdam, the
Netherlands, by the Clinical Research Office of the Endourological
Society (CROES) in an investigator-led, multi-center study assessing the
safety, efficacy and patient satisfaction of the NanoKnife System for the
ablation of prostate cancer. Additionally, the first patient was enrolled
in the multi-center PICC Related Obstruction of Flow (PROOF) Study
investigating whether the BioFlo PICC will be associated with a reduced
incidence of catheter-related venous thrombosis compared to the Bard
PowerPICC SOLO2.
-- The National Institute for Health and Care Excellence (NICE) issued
updated guidance for the treatment of varicose veins. The newly issued
guidance establishes endothermal ablation, which includes endovascular
laser treatment like the Company's VenaCure EVLT system, as the
recommended first option in treating varicose veins.
-- The Company announced its distribution partner, Medcomp Inc., received
Health Canada approval for the Celerity tip location system.
AngioDynamics plans to initiate distribution of the Celerity system in
Canada this month. The system is currently under regulatory review in the
United States and Europe. The Company believes the combination of the
Celerity system with its market-leading, thrombus-resistant BioFlo
technology will provide unparalleled clinical and economic advantages,
and has the potential to become the gold standard in the PICC market.
-- The Company acquired privately-held Clinical Devices, B.V., to obtain the
global rights to a next-generation tip location technology currently
under development. As part of the transaction, AngioDynamics will also
acquire its Netherlands-based distributor of NAMIC fluid management
products.
Full Year and Second Quarter Fiscal 2014 Guidance
"We are raising revenue expectations, following the recent distributor acquisition, to a range of $347 million to $353 million. As a result of our debt refinance results, we also are increasing our adjusted EPS without amortization to be $0.63-$0.67," said Mark Frost, Executive Vice President and Chief Financial Officer. "We are anticipating revenue to range from $85 million to $88 million in the second quarter, up 1% on the top end. Adjusted EPS without amortization is expected to be $0.12-$0.15."
Conference Call
AngioDynamics will host a conference call today at 4:30 p.m. Eastern Time to discuss its first quarter results. To participate in the live call, please dial 1-877-941-8609. In addition, a live webcast and archived replay of the call will be available at http://investors.angiodynamics.com. To access the live webcast, please go to the website 15 minutes prior to 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 EBITDA (earnings before interest, taxes, depreciation and amortization), adjusted EBITDA, adjusted net income and adjusted earnings per share excluding amortization. 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
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