- Second Quarter Fiscal 2015 Net Sales increased 4% to $92.1 million; 5% sales growth excluding supply agreement
- GAAP EPS of $0.04; Non-GAAP adjusted net income of $0.17 per share, a 21% YOY increase
- EBITDA of $11.9 million; Adjusted EBITDA of $15.9 million, a 18% YOY increase
- Company raises full-year adjusted EPS guidance to $0.66-$0.72
ALBANY, N.Y., Jan. 8, 2015 (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 second quarter ended November 30, 2014.
“The strong sales momentum we established last fiscal year continued in the second quarter of FY15 as net sales growth, excluding the supply agreement, reached the high end of our expectation at 5%. Cost savings initiatives and restructuring actions enabled us to realize operating margin expansion leading to earnings per share (non-GAAP) growth of 21% to $0.17 cents per share compared to last year’s fiscal second quarter,” commented Joseph M. DeVivo, President and Chief Executive Officer. “Our three core businesses each made a positive contribution to our strong performance, marking the seventh consecutive quarter for year-over-year sales growth. Oncology/Surgery produced strong 9% net sales growth and was a key driver for our International business. Our Vascular Access business also posted an impressive 9% increase, fueled by the continued strong performance of our BioFlo platform. Today, BioFlo PICCs represent nearly 60% of our total PICC volume, while our BioFlo offerings in ports and dialysis reached double-digit shares of those product categories in the quarter. Peripheral Vascular grew 1% as it anniversaried an impressive quarter last year, and our fast growing AngioVac technology grew 46% in the quarter as we continue to penetrate the thromboembolism market opportunity. Based on the Company’s execution and the performance of our growth drivers in the first half fiscal year 2015, we believe we are extremely well positioned to continue this strong momentum in the second half of Fiscal 2015 to deliver increased net sales, margin expansion and profitability to our shareholders.”
Q2 FY15 Financial Results
Net sales of $92.1 million increased 4% compared with last year’s second quarter net sales of $88.6 million. Excluding the planned wind-down of the supply agreement with Boston Scientific (BSC), second quarter sales were up 5% to $91 million compared to $86.9 million in last year’s second quarter. The following sales comparisons exclude the BSC supply agreement.
Peripheral Vascular net sales in the second quarter increased 1% to $49.4 million compared to $48.8 million in the prior year period. Vascular Access net sales grew 9% to $28 million compared to $25.6 million in the year ago quarter. Oncology/Surgery net sales of $13.6 million increased 9% compared to $12.6 million in the year ago quarter. Net sales in the U.S. rose 4% to $72.1 million from $69.5 million in the prior year period. International net sales grew 9% to $19 million from $17.5 million in last year’s second quarter.
The Company’s net income was $1.3 million, or $0.04 on a per share basis, compared to a net loss of $0.3 million, or $0.01 on a per share basis, a year ago. Excluding the items shown in the attached quarterly non-GAAP reconciliation table, adjusted net income was $6.2 million, or $0.17 per share, for the second quarter compared to net income of $4.9 million, or $0.14 per share, for the year ago quarter, representing a 21% increase.
Second quarter EBITDA grew to $11.9 million, or $0.33 per share, compared to $8.6 million, or $0.24 per share, in the year ago period. Adjusted EBITDA, excluding the items shown in the attached reconciliation table, was $15.9 million, or $0.44 per share, compared to $13.5 million, or $0.38 per share, in the year ago comparable period, representing a 18% increase.
At November 30, 2014, cash and investments were $16.6 million and debt was $155.2 million.
Recent Events
- The Company’s average daily trading volume tripled from approximately 100,000 shares to 300,000 shares after it was added to the S&P SmallCap 600 Index and the GICS Life & Health Insurance sub-industry index after the close of trading on Monday, October 20, 2014. The S&P SmallCap 600 Index consists of 600 small capitalization stocks defined as companies with market capitalizations between $400 million and $1.8 billion. Other criteria include financial viability, stock trading liquidity, public float size and corporate governance structure.
- AngioDynamics’ NanoKnife system received OPS procedure classification codes from the German Ministry of Health. Eleven new OPS Codes were introduced covering bile ducts, bone, liver, lung, stomach, adrenal gland, kidney, esophagus, prostate pancreas and rectum. This process is the first step in securing reimbursement for new medical technologies in Germany. Additionally, the Company received a DRG code for NanoKnife in the Pancreas in the Netherlands.
- The Company signed an agreement, effective January 1, 2015, with HealthTrust covering PICC (peripherally inserted central catheter) products. Under the terms of the agreement, AngioDynamics’ entire PICC portfolio, including its thromboresistant BioFlo PICC product line and Celerity tip location system, became available to HealthTrust members.
- The Company received a Warning Letter from the FDA relating to observations noted during FDA’s inspection of the Company’s Navilyst Medical facilities located in Marlborough, Mass. and Glens Falls, N.Y. in 2014. The matters raised in the Warning Letter and observations focused on design control processes related to packaging validations and accelerated and real time aging testing in connection with the Company’s fluid management and PICC families of products, inconsistency of a manufacturing product test process used among similar valved PICC products, a particular verification test of valved PICC products and non-conforming product control procedures. The Company takes these matters seriously and is committed to complying with all applicable laws, regulations and rules in connection with the manufacturing, sale and marketing of its products. The Company made a comprehensive response to the issues raised in the letter and is committed to working with FDA to resolve all outstanding issues.
- The Company saw regulatory developments in both domestic and international registrations and renewals. Recent U.S. approvals include two new FDA clearances for the AngioVac system updating the cannula design for improved vessel access and changes to the circuit to improve rapid connector set up. In addition the packaging for the system has been updated for easier access and storage. Other U.S. clearances included a VenaCure EVLT NeverTouch Procedure Kit and Tre-Sheath and PICC Maximal Barrier Nursing Kit. Internationally, the Company gained NanoKnife registrations in New Zealand, Russia, Thailand and Hong Kong, as well as radio frequency ablation registrations in Israel and microwave in Thailand, along with various Vascular Access and Peripheral vascular registrations in Canada, Europe, Israel and China.
- AngioDynamics saw further clinical traction with NanoKnife, with two new papers published during the course of quarter. This included, “Systematic review of irreversible electroporation in the treatment of advanced pancreatic cancer,” published by EJSO online in August 2014 by Dr. Moir et al., and, “Irreversible Electroporation: A Novel Therapy for Stage III Pancreatic Cancer,” published by Advances in Surgery online in September 2014 by Dr. Weiss and Wolfgang from Johns Hopkins’ Department of Surgery.
Six Months Financial Results
For the six months ended November 30, 2014, net sales were $179.5 million, a 4% increase compared to the $172.2 million reported a year ago. The Company’s net income was $1.8 million, or $0.05 per share, compared to net loss of $0.6 million, or $0.02 per share, reported a year ago. Excluding the items shown in the attached quarterly non-GAAP reconciliation table, adjusted net income was $11.9 million, or $0.33 per share, compared to net income of $8.9 million, or $0.25 per share, a year ago, representing a 32% increase. EBITDA was $21.8 million, or $0.61 per share, compared to EBITDA of $16.7 million, or $0.47 per share, a year ago. Adjusted EBITDA, excluding the items shown in the attached reconciliation table, was $30.4 million, or $0.84 per share, compared to $25.6 million, or $0.73 per share, in the year ago period, representing a 19% increase.
Fiscal 2015 and Third Quarter Guidance
“As a result of our continued strong operational performance, we are raising both the lower and upper end of our adjusted earnings per share (EPS) guidance to a range of $0.66 to $0.72,” said Mark Frost, Executive Vice President and Chief Financial Officer, “while maintaining our net sales guidance range at $362 million to $368 million.
“We are anticipating net sales to range from $88 million to $91 million in the third quarter, 5% at the top end excluding our supply agreement,” Mr. Frost continued. “Adjusted EPS excluding amortization is expected to be $0.14 to $0.17, representing a 21% improvement over third quarter fiscal 2014 at the high end.”
Conference Call
AngioDynamics will host a conference call today at 4:30 p.m. Eastern Time to discuss its second quarter results. To participate in the live call by telephone, please call 1-888-299-7209 and reference the Conference ID: 2628397. 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
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