AngioDynamics Reports Fiscal 2014 Third Quarter Financial Results

AngioDynamics Reports Fiscal 2014 Third Quarter Financial Results

  *Net sales increase 8% over prior year to $88.2 million
  *GAAP income per share of $0.14; Non-GAAP adjusted net income, excluding
    amortization, of $0.16 per share
  *Adjusted EBITDA of $14.6 million
  *Company's revenue guidance to $351 million- $355 million for FY14;
    Adjusted EPS, excluding amortization, of $0.60-$0.63

ALBANY, N.Y., April 9, 2014 (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 third quarter ended February
28, 2014.

"Our strong top line performance marks the fourth consecutive quarter of
improved sales results, reflecting continued market acceptance of our
innovative products and solid execution by our global sales team. The 8%
revenue increase was driven by double-digit sales growth in our Peripheral
Vascular and Oncology/Surgery businesses of 11% and 15%, respectively, and a
significant turnaround in Vascular Access, which grew 3% over last year's
comparable quarter and 7% from the prior quarter. The improvement in our
Vascular Access business demonstrates the effectiveness of the BioFlo
technology which now accounts for 40% of our global PICC revenue," said Joseph
M. DeVivo, President and Chief Executive Officer. "With the recent FDA
clearance of the DuraMax Dialysis Catheter with BioFlo – the third U.S.
clearance of a BioFlo product line – we expect further adoption of this
technology as its clinical value becomes widely accepted. As our other key
growth drivers, including the AngioVac Cannula & Circuit in our Peripheral
Vascular business, and the Acculis microwave system in our Oncology/Surgery
business, make a more significant contribution to overall revenue, we
anticipate improved margin profile over time leading to improved
profitability."

Q3 FY14 Financial Results

Net sales of $88.2 million were up 8% compared with last year's third quarter
net sales of $81.6 million. Excluding the planned wind-down of the supply
agreement with Boston Scientific (BSC), third quarter sales were up 9% to
$86.6 million compared to $79.5 million in last year's third quarter. The
following sales comparisons exclude the BSC supply agreement.

Peripheral Vascular net sales in the third quarter increased 11% to $47.4
million compared to $42.6 million in the prior year period. Vascular Access
net sales increased 3% to $27.3 million compared to $26.4 million in the year
ago quarter. Oncology/Surgery net sales of $12 million increased 15% compared
to the year ago quarter. U.S. net sales increased 10% to $69.9 million from
$63.8 million in the prior year period, and International net sales were up 7%
at $16.8 million compared to a year ago.

The Company's net income in the third quarter was $5.1 million, or $0.14 per
share, compared to a net loss of $1 million, or $0.03 per share, in the prior
year period. Excluding the items shown in the attached quarterly non-GAAP
reconciliation table, adjusted net income excluding amortization for
intangible assets was $5.6 million, or $0.16 per share, for the third quarter
of fiscal year 2014 compared to net income of $5.5 million, or $0.16 per
share, for the year ago quarter.

Third quarter EBITDA was $14 million, or $0.39 per share, compared to EBITDA
of $6.5 million, or $0.18 per share, a year ago. Adjusted EBITDA, excluding
the items shown in the attached reconciliation table, was $14.6 million, or
$0.41 per share, compared to $13.7 million, or $0.39 per share, in the year
ago period.

At February 28, 2014, cash and investments were $9.2 million and debt was
$138.9 million.

Recent Operational Highlights

  *The U.S. Food and Drug Administration (FDA) cleared an expanded indication
    for the Company's AngioVac cannula for venous drainage during
    extracorporeal bypass for up to six hours to include removal of fresh,
    soft thrombi or emboli. The expanded clearance makes AngioVac a more
    powerful tool for physicians in the U.S., where an estimated 1 million
    people are affected by venous thromboembolic disease (VTE).
  *The Company received 510(k) clearance for its BioFlo DuraMax chronic
    hemodialysis catheter – the third U.S. clearance of a BioFlo product line
    in the Company's Vascular Access business. The Company expects a
    commercial launch in the fourth quarter of fiscal year 2014.
  *The Company executed an agreement with Medcomp and its development partner
    to acquire regulatory control over the Celerity tip-location platform, as
    well as access to next-generation product introductions.
  *Enrollment of the first patient in a clinical study at Duke University to
    evaluate the feasibility and short-term safety and effectiveness of the
    NanoKnife system in the ablation of focal prostate cancer occurred. The
    prospective, non-randomized pilot study will enroll six patients who meet
    a low risk prostate cancer criteria defined by this protocol. The primary
    objective will be to evaluate procedural and short-term post-treatment
    safety of the NanoKnife system via incidence of adverse events and
    evaluation of effect on urologic (urinary and erectile) function.
  *The Company was awarded $74.9 million in damages based
    onAngioDynamics'claims against biolitec AG,Biomed Technology Holdings
    LimitedandWolfgang Neuberger.
  *The Company completed the creation of its Distribution Center of
    Excellence in Queensbury, representing a major milestone in its
    Company-wide operational excellence program designed to save $15 million
    to $18 million during the course of the next three years.
  *AngioDynamics' new Oracle-based business system was launched, unifying the
    Company under a single ERP system, and completing one of the final and
    most visible steps to completing the integration of AngioDynamics and
    Navilyst Medical.

Nine Months Financial Results

For the nine months ended February 28, 2014, net sales were $260.4 million, a
3% increase compared to net sales of $252 million reported a year ago. The
Company's net income was $4.6 million, or $0.13 per share, compared to net
income of $0.3 million, or $0.01 per share, reported a year ago. Excluding the
items shown in the attached quarterly non-GAAP reconciliation table, adjusted
net income excluding amortization for intangible assets was $14.7 million, or
$0.41 per share, compared to net income of $17.5 million, or $0.50 per share,
a year ago. EBITDA was $29.1 million, or $0.83 per share, compared to EBITDA
of $24.4 million, or $0.69 per share, a year ago. Adjusted EBITDA, excluding
the items shown in the attached reconciliation table, was $38.6 million, or
$1.09 per share, compared to $43.3 million, or $1.23 per share, in the year
ago period.

Fiscal 2014 Guidance

"Our net sales increase in the third quarter included one additional selling
day, which benefitted our top line by approximately 2%.Given our strong sales
performance in the first nine months of fiscal 2014, we are raising our fiscal
year 2014 sales guidance to a range of $351 million to $355 million," said
Mark Frost, Executive Vice President and Chief Financial Officer. "We are also
revising our fiscal year 2014 expectation for adjusted EPS without
amortization to a range of $0.60 to $0.63 due to our current product and
geographic mix, as well as unanticipated costs related to the recent Medcomp
agreement."

"As a result of the updated fiscal year 2014 guidance, we anticipate revenue
to range from $91 million to $95 million in the fiscal fourth quarter, up to
6% at the top end and 8% on an average daily sales basis, and adjusted EPS
without amortization is expected to be in the range of $0.18-$0.21," Mr. Frost
concluded.

Conference Call

AngioDynamics will host a conference call today at 4:30 p.m. Eastern Time to
discuss itsthird quarter results. To participate in the live call, please
dial 1-877-941-0844. 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 (income before interest, taxes, depreciation
and amortization), adjusted EBITDA, adjusted net income, excluding
amortization, 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

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 www.AngioDynamics.com.

Trademarks

AngioDynamics, the AngioDynamics logo, Acculis, AngioVac, BioFlo DuraMax and
NanoKnife are trademarks and/or registered trademarks of AngioDynamics Inc.,
an affiliate or a subsidiary. Celerity is a trademark and/or registered
trademark of Medcomp Inc.

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, 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, 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, including Navilyst Medical
and its products, R&D capabilities, infrastructure and employees 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, 2013. AngioDynamics does not assume any obligation to publicly update
or revise any forward-looking statements for any reason.

ANGIODYNAMICS, INC. AND SUBSIDIARIES
CONSOLIDATED INCOME STATEMENTS
(in thousands, except per share data)
                                                                 
                                       Three months ended Nine months ended
                                       Feb 28,  Feb 28,   Feb 28,   Feb 28,
                                       2014     2013      2014      2013
                                       (unaudited)        (unaudited)
                                                                 
Net sales                               $88,195 $81,571  $260,390 $251,994
Cost of sales                                                     
Acquired inventory step-up             75      400      150      3,845
Quality call to action                 --     38       --      850
Other cost of sales                    42,485  39,932   127,193  122,552
Total cost of sales                    42,560  40,370   127,343  127,247
Gross profit                            45,635  41,201   133,047  124,747
% of net sales                          51.7%    50.5%     51.1%     49.5%
                                                                 
Operating expenses                                                
Research and development              7,045   5,793    20,757   19,881
Sales and marketing                    20,700  18,520   61,736   55,734
General and administrative             6,231   6,046    19,082   19,854
Amortization of intangibles            4,248   4,314    12,871   11,961
Medical device tax                     980     683      2,955    683
Change in fair value of contingent     (4,154) 630      (2,481)  827
consideration
Acquisition and other non-recurring    3,016   5,157    7,697    9,943
Total operating expenses                38,066  41,143   122,617  118,883
Operatingincome                       7,569   58       10,430   5,864
Other income (expense), net             (1,985) (1,879)  (5,580)  (5,707)
Income (loss) before income taxes       5,584   (1,821)  4,850    157
Provision for (benefit from) income     476     (829)    267      (99)
taxes
Net income (loss)                       $5,108 $(992)  $4,583  $256
                                                                 
Earnings (loss) per common share                                  
Basic                                   $0.15  $(0.03) $0.13   $0.01
Diluted                                 $0.14  $(0.03) $0.13   $0.01
                                                                 
Weighted average common shares                                    
Basic                                   35,184  34,834   35,088   34,787
Diluted                                 35,704  34,834   35,372   35,315
                                                                 
                                                                 

ANGIODYNAMICS, INC. AND SUBSIDIARIES
GAAP TO NON-GAAP RECONCILIATION
(in thousands, except per share data)
                                                                 
Reconciliation of Net Income to non-GAAP Adjusted Net Income:
                                                                 
                                       Three months ended Nine months ended
                                       Feb 28,  Feb 28,   Feb 28,   Feb 28,
                                       2014     2013      2014      2013
                                       (unaudited)        (unaudited)
                                                                 
Net income (loss)                       $5,108 $(992)  $4,583  $256
                                                                 
After tax:                                                        
Acquisition and other non-recurring (1) 2,176   3,111    5,208    6,158
Quality Call to Action Program (2)      --     24       --      540
Inventory step-up (3)                   48      254      95       2,442
Contingent earn out valuation (4)       (4,461) 400      (3,398)  525
Amortization of intangibles             2,698   2,739    8,173    7,596
Adjusted net income excluding           $5,569 $5,536  $14,661 $17,516
amortization
                                                                 
                                                                 
Reconciliation of Diluted Earnings Per Share to non-GAAP Adjusted Diluted
Earnings Per Share:
                                                                 
                                       Three months ended Nine months ended
                                       Feb 28,  Feb 28,   Feb 28,   Feb 28,
                                       2014     2013      2014      2013
                                       (unaudited)        (unaudited)
                                                                 
Diluted earnings (loss) per share       $0.14  $(0.03) $0.13   $0.01
                                                                 
After tax:                                                        
Acquisition and other non-recurring (1) 0.06    0.09     0.15     0.17
Quality Call to Action Program (2)      0.00    0.00     0.00     0.02
Inventory step-up (3)                   0.00    0.01     0.00     0.07
Contingent earn out valuation (4)       (0.12)  0.01     (0.10)   0.01
Amortization of intangibles             0.08    0.08     0.23     0.22
Adjusted diluted earnings per share     $0.16  $0.16   $0.41   $0.50
excluding amortization
                                                                 

(1) Includes costs relating to acquisitions, debt financing, business
restructuring, litigation and facility consolidations.
(2) Direct costs of implementing a comprehensive Quality Call to Action
program to review and augment the
quality management systems at our Queensbury and Fremont facilities.
(3) Amortization of basis step-up of acquired inventory.
(4) Impact of revaluation of contingent earn outs related to acquisitions.



ANGIODYNAMICS, INC. AND SUBSIDIARIES
GAAP TO NON-GAAP RECONCILIATION (Continued)
(in thousands, except per share data)
                                                                 
Reconciliation of Net Income to EBITDA and Adjusted EBITDA:
                                                                 
                                      Three months ended  Nine months ended
                                      Feb 28,   Feb 28,   Feb 28,   Feb 28,
                                      2014      2013      2014      2013
                                      (unaudited)         (unaudited)
                                                                 
Net income (loss)                      $5,108  $(992)  $4,583  $256
                                                                 
Provision for (benefit from) income    476      (829)    267      (99)
taxes
Other income (expense), net            1,985    1,879    5,580    5,707
Amortization of intangibles            4,248    4,314    12,871   11,961
Depreciation                           2,227    2,096    5,889    6,610
EBITDA                                 14,044   6,468    29,190   24,435
                                                                 
Acquisition and other non-recurring    3,016    5,157    7,697    9,943
(1)
Stock-based compensation               1,599    997      4,022    3,372
Quality Call to Action Program (2)     --      38       --      850
Inventory step-up (3)                  75       400      150      3,845
Contingent earn out revaluation (4)    (4,154)  630      (2,481)  827
Adjusted EBITDA                        $14,580 $13,690 $38,578 $43,272
                                                                 
EBITDA per common share                                           
Basic                                  $0.40   $0.19   $0.83    $0.70
Assumes Diluted                        $0.39   $0.18   $0.83    $0.69
                                                                 
Adjusted EBITDA per common share                                  
Basic                                  $0.41    $0.39    $1.10    $1.24
Assumes Diluted                        $0.41    $0.39    $1.09    $1.23
                                                                 
                                                                 
Reconciliation of Operating Income to non-GAAP Adjusted Operating Income:
                                                                 
                                      Three months ended  Nine months ended
                                      Feb 28,   Feb 28,   Feb 28,   Feb 28,
                                      2014      2013      2014      2013
                                      (unaudited)         (unaudited)
                                                                 
Operating income (loss)                $7,569   $58      $10,430  $5,864
                                                                 
Acquisition and other non-recurring    3,016    5,157    7,697    9,943
(1)
Quality Call to Action Program (2)     --      38       --      850
Inventory step-up (3)                  75       400      150      3,845
Contingent earn out revaluation (4)    (4,154)  630      (2,481)  827
Amortization of intangibles            4,248    4,314    12,871   11,961
Adjusted Operating income              $10,754 $10,597 $28,667 $33,290
                                                                 

(1) Includes costs relating to acquisitions, debt financing, business
restructuring, litigation and facility consolidations.
(2) Direct costs of implementing a comprehensive Quality Call to Action
program to review and augment the
 quality management systems at our Queensbury and Fremont facilities.
(3) Amortization of basis step-up of acquired inventory.
(4) Impact of revaluation of contingent earn outs related to acquisitions



ANGIODYNAMICS, INC. AND SUBSIDIARIES
PRELIMINARY NET SALES BY PRODUCT CATEGORY AND BY GEOGRAPHY
(unaudited in thousands)
                                                                  
                          Three months ended (a)   Nine months ended (b)
                          Feb 28,  Feb 28,  %      Feb 28,   Feb 28,   %
                          2014     2013     Growth 2014      2013      Growth
                                                                  
Net Sales by Product                                               
Category
Peripheral Vascular        $47,403 $42,616 11%    $141,743 $131,676 8%
Vascular Access            27,259  26,391  3%     78,113   79,733   (2%)
Oncology/Surgery           11,968  10,449  15%    35,692   33,688   6%
Total Excluding Supply     86,630  79,456  9%     255,548  245,097  4%
Agreement
Supply Agreement           1,565   2,115   (26%)  4,842    6,897    (30%)
Total                      $88,195 $81,571 8%     $260,390 $251,994 3%
                                                                  
Net Sales by Geography                                             
United States              $69,859 $63,784 10%    $206,491 $196,682 5%
International              16,771  15,672  7%     49,057   48,415   1%
Supply Agreement           1,565   2,115   (26%)  4,842    6,897    (30%)
Total                      $88,195 $81,571 8%     $260,390 $251,994 3%
                                                                  

(a) Sales days for the three months ended Feb 28, 2014 and Feb 28, 2013, were
61 and 60 days respectively.
(b) Sales days for the nine months ended Feb 28, 2014 and Feb 28, 2013 were
both 187 days.



ANGIODYNAMICS, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(in thousands)
                                                           
                                                Feb 28,     May 31,
                                                2014        2013
                                                (unaudited) (unaudited)
Assets                                                      
Current Assets                                              
Cash and cash equivalents                        $7,382     $21,802
Marketable securities                            1,807      2,153
Total cash and investments                      9,189      23,955
                                                           
Receivables, net                                 57,726     47,791
Inventories, net                                 59,834     55,062
Deferred income taxes                            3,656      6,591
Prepaid income taxes                             2,727      438
Prepaid expenses and other                       7,000      7,679
Total current assets                            140,132    141,516
                                                           
Property, plant and equipment, net               66,478     62,650
Intangible assets, net                           207,970    214,848
Goodwill                                         359,736    355,458
Deferred income taxes                            11,721     11,007
Other non-current assets                         6,137      6,105
Total Assets                                    $792,174   $791,584
                                                           
Liabilities and Stockholders' Equity                        
Current portion of long-term debt                $5,000     $7,500
Current portion of contingent consideration      12,146     9,207
Other current liabilities                        46,235     46,730
Total current liabilities                       63,381     63,437
Long-term debt, net of current portion           133,910    135,000
Contingent consideration, net of current portion 55,841     65,842
Other long-term liabilities                      1,353      475
Total Liabilities                               254,485    264,754
                                                           
Stockholders' equity                             537,689    526,830
Total Liabilities and Stockholders' Equity      $792,174   $791,584
                                                           
Shares outstanding                               35,416     35,060
                                                           
                                                           

ANGIODYNAMICS, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
                                                               
                              Three months ended      Nine months ended
                              Feb 28,     Feb 28,     Feb 28,     Feb 28,
                              2014        2013        2014        2013
                              (unaudited) (unaudited) (unaudited) (unaudited)
                                                               
Cash flows from operating                                       
activities:
Netincome(loss)            $5,108    $(992)    $4,583    $256
Depreciation and              6,475      6,410      18,760     18,571
amortization
Change in fair value of       (4,154)    630        (2,481)    827
contingent consideration
Tax effect of exercise of     --        82         (146)      (422)
stock options
Deferred income taxes        794        1,244      2,219      3,419
Stock-based compensation     1,599      997        4,022      3,372
Amortization of inventory     75         400        150        3,845
step-up
Other                        (28)       1,304      (51)       894
Changes in operating assets                                    
and liabilities
Receivables                  (9,321)    2,454      (9,411)    3,957
Inventories                  144        644        (4,225)    (9,468)
Accounts payable and accrued  (1,059)    (3,273)    2,698      (10,134)
liabilities
Other                        (265)      100        (944)      398
Net cash provided by (used    (632)      10,000     15,174     15,515
in) operating activities
                                                               
Cash flows from investing                                      
activities:
Additions to property, plant  (1,811)    (2,921)    (9,003)    (7,708)
and equipment
Acquisition of businesses,    (30)       (10,966)   (4,349)    (25,274)
net of cash acquired
Other cash flows from         --        2,500      --        3,301
investing activities
Purchases, sales and
maturities of marketable       25         --        328        11,855
securities, net
Net cash provided by (used    (1,816)    (11,387)   (13,024)   (17,826)
in) investing activities
                                                               
Cash flows from financing                                       
activities:
Repayment of long-term debt  (1,250)    (1,875)    (145,000)  (5,625)
Proceeds from issuance of new --        --        141,410    --
debt
Payment of Contingent         (5,250)    --        (14,597)   --
Consideration
Deferred financing costs of   --        --        (677)      --
long-term debt
Proceeds from exercise of     1,075      620        2,208      1,096
stock options and ESPP
Net cash provided by (used    (5,425)    (1,255)    (16,656)   (4,529)
in) financing activities
                                                               
Effect of exchange rate       82         (54)       86         (43)
changes on cash
Increase(Decrease) in cash   (7,791)    (2,696)    (14,420)   (6,883)
and cash equivalents
                                                               
Cash and cash equivalents                                       
Beginning of period          15,173     19,321     21,802     23,508
End of period                $7,382     $16,625    $7,382     $16,625
                                                               

CONTACT: Company Contact:
         AngioDynamics Inc.
         Mark Frost, CFO
         (800) 772-6446 x1981
         mfrost@AngioDynamics.com
        
         Investor Relations Contacts:
         EVC Group, Inc.
         Michael Polyviou/Robert Jones
         (212) 850-6020; (646) 201-5447
         mpolyviou@evcgroup.com; bjones@evcgroup.com
        
         Media Contact:
         EVC Group, Inc.
         Dave Schemelia
         (646) 201-5431
         dave@evcgroup.com
 
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