- Third quarter fiscal 2015 net sales of $86.6 million; flat vs. prior year, excluding the wind down of supply agreement and $1 million on a constant currency basis
- GAAP loss of $0.12 per share primarily due to one-time non-cash charges
- Non-GAAP adjusted net income of $0.12 per share, negatively impacted $0.02 by foreign currency
- Operating cash generation of $12.2 million
- Company updates full-year fiscal year 2015 net sales and adjusted EPS guidance
ALBANY, N.Y., April 9, 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 third quarter ended February 28, 2015.
Q3 FY15 Financial Results
Net sales of $86.6 million decreased 2% year over year from $88.2 million in last fiscal year’s third quarter. Sales were flat year-over-year on a constant currency basis and excluding the planned wind down of the supply agreement with Boston Scientific (BSC). The following sales comparisons exclude the BSC supply agreement.
Peripheral Vascular net sales in the third quarter were $46.2 million, down 2% compared to $47.4 million in fiscal year 2014 third quarter. Vascular Access net sales were $26.4 million, a decrease of 3% from $27.3 million in the year ago quarter. Oncology/Surgery net sales of $13.1 million grew 9% over the $12 million in the prior year’s third quarter. Overall, net sales in the U.S. were down 2% year over year to $68.4 million from $69.8 million. International net sales grew 3% to $17.3 million from $16.8 million in last year’s third quarter. On a constant currency basis, international sales increased 8% compared to the fiscal 2014 third quarter.
The Company’s GAAP net loss was $4.3 million, or $0.12 loss per share, compared to net income of $4.5 million, or $0.13 per share, in the fiscal 2014 third quarter. The current year period includes $15.5 million of non-cash, long-term asset impairment charges, $5.9 million of expenses associated with a product recall and discontinuance and $5.1 million of amortization, partially offset by a $10 million benefit from changes in the present value of contingent consideration. Excluding the items shown in the attached quarterly non-GAAP reconciliation table, adjusted net income was $4.4 million, or $0.12 per share, for the third quarter compared to net income of $4.9 million, or $0.14 per share, for the year ago quarter. This includes $0.02 impact from movements in currencies, particularly the euro and Canadian dollar, which declined against the U.S. dollar.
Third quarter EBITDA was a loss of $1.4 million, or $0.04 loss per share, compared to $13.8 million, or $0.39 per share, in the year ago period. Adjusted EBITDA, excluding the items shown in the attached reconciliation table, was $13.5 million, or $0.37 per share, compared to $13.9 million, or $0.39 per share, in the year ago comparable period.
During the third quarter, the Company voluntary recalled its Morpheus PICC line. An internal cost/benefit analysis, coupled with the favorable market response to the Company’s BioFlo product offerings, prompted the acceleration of a pre-existing strategy to focus the Vascular Access business on products featuring BioFlo technology, resulting in the termination of the Morpheus PICC product line.
At February 28, 2015, cash and investments were $21.4 million and debt was $148.9 million.
“We delivered mixed financial results in the fiscal 2015 third quarter,” said Joseph M. DeVivo, President and Chief Executive Officer. “Facing an extremely difficult operating environment, coupled with a decision to withdraw from the market our Morpheus PICC product line, we delivered at the low end of our expectations, excluding currency effects. Otherwise our team continues to execute well, driving more of our top line to higher growth thanks to our focus on innovative products that improve patient outcomes and reduce overall healthcare costs. Our Vascular Access business’ BioFlo products continued to experience strong volume growth, further establishing its position as a truly disruptive technology. During the quarter we received an FDA clearance allowing for the elimination of a follow up X-ray when our Celerity tip location PICC is used, significantly improving our competitive position in this market. Sales in our Oncology/Surgery business grew 9% driven by continued strong NanoKnife disposable sales, particularly in the international market. We continued to rationalize our cost structure as part of our Operational Excellence program as we balance investments in growth areas with operating efficiency measures to meet our financial goals.
“I am also very pleased we signed a definitive agreement with EmboMedics,” Mr. DeVivo added. “EmboMedics’ resorbable microsphere technology positions us to return to the embolic market with a highly differentiated, highly margin-accretive technology. Adding a winning high growth technology to the Oncology/Surgery portfolio, coupled with NanoKnife and Acculis Microwave ablation system, helps deliver the most potent interventional oncology product line in the marketplace.”
Recent Events
- On April 9, 2015, the Company announced a worldwide licensing agreement with privately-held EmboMedics Inc., of Minneapolis, Minn., which develops injectable and resorbable microspheres. Embolization is the fastest growing segment in Interventional Radiology, and this newly formed strategic relationship will allow AngioDynamics to leverage the talent and knowledge of its sales team to re-enter the approximately $150 million addressable global embolic market.
- AngioDynamics received U.S. Food and Drug Administration (FDA) clearance for an expanded indication for the Celerity tip location system. The new clearance allows for the elimination of a follow-up X-ray when the Celerity system is used to aid in positioning Peripherally Inserted Central Catheters (PICCs) in adults.
Nine Months Financial Results
For the nine months ended February 28, 2015, net sales were $266.1 million, a 2% increase compared to the $260.4 million reported in the year ago nine month period. The growth rate was 3% excluding the supply agreement and on a constant currency basis. The Company’s net loss was $2.5 million, or $0.07 loss per share, compared to net income of $3.9 million, or $0.11 per share, reported for the first nine months of fiscal year 2014. Excluding the items shown in the attached quarterly non-GAAP reconciliation table, adjusted net income was $16.2 million, or $0.45 per share, compared to net income of $13.8 million, or $0.39 per share, a year ago representing a 15% increase. Excluding the impact of unfavorable currency adjustments, net income was $0.47, or a 21% increase. EBITDA was $20.4 million, or $0.56 per share, compared to EBITDA of $30.5 million, or $0.86 per share, a year ago. Adjusted EBITDA, excluding the items shown in the attached reconciliation table, was $43.8 million, or $1.21 per share, compared to $39.5 million, or $1.12 per share, in the year ago period, an increase of 8%.
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