- Q2 net sales of $89.0 million, down 0.3% year-over-year
- Q2 GAAP earnings per share of $0.37; non-GAAP adjusted EPS up 36% from Q2 Fiscal 2016
- Q2 operating cash generation of $14.9 million; free cash flow generation of $13.6 million
- Reiterated FY2017 revenue guidance; increased adjusted EPS and free cash flow guidance
ALBANY, N.Y., Jan. 06, 2017 (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 2017 fiscal year second quarter ended November 30, 2016.
“Our second quarter results reflect a solid quarter of execution against our fiscal 2017 plan and expectations,” said Jim Clemmer, President and Chief Executive Officer of AngioDynamics. “We again saw results driven by the Peripheral Vascular franchise, enhanced by demand created by the Cook Medical angiographic catheter recall. Looking across the business, other areas of strength include continued momentum in BioFlo Midline in the Vascular Access franchise, as well as increased utilization in NanoKnife within Oncology/Surgery.”
Mr. Clemmer continued “As we move forward into the second half of fiscal 2017, we continue to make solid progress towards enhancing our operations and developing our long-term growth strategy. During the quarter, we implemented some operational improvements in the form of SKU rationalization, supply chain optimization and a more disciplined approach to controlling our SG&A costs, which we believe will result in improved profitability. Our senior management team continues to work diligently to develop and refine a growth strategy that will improve our operational performance, unlock strategic opportunities and create long-term value for our shareholders. We look forward to providing further updates on our strategic progress in the coming months.”
Second Quarter 2017 Financial Results
Net sales for the fiscal second quarter were $89.0 million, down 0.3% compared with $89.3 million a year ago. Currency did not have an impact in the quarter.
The following comparisons exclude the Boston Scientific supply agreement.
Peripheral Vascular net sales in the second quarter were $52.9 million compared to $51.1 million in the fiscal year 2016 second quarter. Vascular Access net sales in the second quarter were $23.6 million compared to $25.0 million a year ago. Oncology/Surgery net sales in the second quarter were $11.8 million compared to $12.5 million in the fiscal year 2016 second quarter. Overall U.S. net sales in the second quarter were $70.8 million compared to $70.7 million in the year ago second quarter. Overall International net sales in the second quarter were $17.4 million compared to $17.9 million a year ago.
In the second quarter of fiscal 2017 the Company recorded net income of $13.7 million, or $0.37 on a per share basis, driven primarily by adjustments to contingent consideration and operational improvements. The adjustments to contingent consideration comprise $16.5 million based upon a determination that both AngioVac and an R&D project related to tip location will no longer meet the necessary milestones that will require future liability payments. These gains were partially offset by a $3.6 million write-off of the intangible asset associated with the original consideration paid for the tip location project, as well as an unrelated $2.0 million write-off of the company’s investment in EmboMedics. The Company recorded a net loss of $0.3 million, or $0.01 on a per share basis, in the second quarter of fiscal 2016. Excluding the items shown in the attached quarterly non-GAAP reconciliation table, adjusted net income for the second quarter of fiscal 2017 was $6.9 million, or $0.19 per share, compared to an adjusted net income of $5.1 million, or $0.14 per share, in the second quarter of fiscal 2016.
Adjusted EBITDA in the second quarter of fiscal 2017, excluding the items shown in the attached reconciliation table, was $16.1 million, or $0.43 per share, compared to $13.5 million, or $0.37 per share, in the second quarter of fiscal 2016.
In the second quarter of fiscal 2017, the Company generated $14.9 million in operating cash flow and $13.6 million in free cash flow. As of November 30, 2016, cash and cash equivalents were $35.7 million and debt was $116.5 million.
“Our prudent and thoughtful approach to financial management was apparent in our financial results, as we continue to exceed our projections in free cash flow generation” said Michael Greiner, Executive Vice President and Chief Financial Officer of AngioDynamics. “A strong balance sheet is critical to supporting our long-term growth strategy. During and after the quarter, we took steps to further strengthen our capital structure by entering into a new credit facility as well as paying down debt, which provides us flexibility going forward to capitalize on growth opportunities. We also authorized a share repurchase program, which will be supported by our continued free cash flow generation and underscores our confidence in the future of our business.”
Six Months Financial Results
For the six months ended November 30, 2016, net sales were $177.1 million compared to the $173.0 million reported a year ago. The Company's net income was $15.0 million, or $0.41 per share, compared to net loss of $1.1 million, or $0.03 per share, reported a year ago. Excluding the items shown in the attached quarterly non-GAAP reconciliation table, adjusted net income was $13.3 million, or $0.36 per share, compared to adjusted net income of $9.0 million, or $0.25 per share, a year ago. Adjusted EBITDA, excluding the items shown in the attached reconciliation table, was $31.0 million, or $0.84 per share, compared to $25.1 million, or $0.69 per share, in the year ago period.
Fiscal Year 2017 Financial Guidance
The Company announced its FY2017 revenue guidance will remain unchanged, with net sales guidance in the range of $355 million to $360 million. The Company is increasing its FY2017 adjusted EPS guidance from a range of $0.62 to $0.65 to a range of $0.65 to $0.67 and free cash flow guidance from greater than $30 million to greater than $35 million.
Conference Call
AngioDynamics will host a conference call today at 8:00am ET to discuss its second quarter results. To participate in the live call by telephone, please call 888-461-2031 and reference the Conference ID: 2977550. In addition, a live webcast and archived replay of the call will be available at investors.angiodynamics.com/events. To access the live webcast, please go to the website 15-minutes prior 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 net sales excluding a supply agreement; adjusted EBITDA; adjusted gross profit; adjusted net income, adjusted earnings per share and free cash flow. 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 drainage products, thrombolytic products and venous products. More information is available at AngioDynamics.com.
Trademarks
AngioDynamics, the AngioDynamics logo, BioFlo, AngioVac and NanoKnife are trademarks and/or registered trademarks of AngioDynamics Inc., an affiliate or a subsidiary. EmboMedics is a trademark and/or registered trademark of EmboMedics 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, infringement of AngioDynamics' technology or assertions that AngioDynamics' technology infringes the technology of third parties, the ability of AngioDynamics to effectively compete against competitors that have substantially greater resources, 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, challenges with respect to third-party distributors or joint venture partners or collaborators, the results of sales efforts, the effects of product recalls and product liability claims, changes in key personnel, the ability of AngioDynamics to execute on strategic initiatives, 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, 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, 2016 and its quarterly report on Form 10-Q for the fiscal period ended August 31, 2016. AngioDynamics does not assume any obligation to publicly update or revise any forward-looking statements for any reason.
In the United States, the NanoKnife System has received a 510(k) clearance by the Food and Drug Administration for use in the surgical ablation of soft tissue, and is similarly approved for commercialization in Canada, the European Union and Australia. The NanoKnife System has not been cleared for the treatment or therapy of a specific disease or condition.
| ANGIODYNAMICS, INC. AND SUBSIDIARIES | |||||||||||||||||
| CONSOLIDATED INCOME STATEMENTS | |||||||||||||||||
| (in thousands, except per share data) | |||||||||||||||||
| Three months ended | Six months ended | ||||||||||||||||
| Nov 30, | Nov 30, | Nov 30, | Nov 30, | ||||||||||||||
| 2016 | 2015 | 2016 | 2015 | ||||||||||||||
| (unaudited) | (unaudited) | ||||||||||||||||
| Net sales | $ | 89,029 | $ | 89,284 | $ | 177,127 | $ | 173,037 | |||||||||
| Cost of sales (exclusive of intangible amortization) | 44,019 | 43,400 | 87,085 | 83,782 | |||||||||||||
| Gross profit | 45,010 | 45,884 | 90,042 | 89,255 | |||||||||||||
| % of net sales | 50.6 | % | 51.4 | % | 50.8 | % | 51.6 | % | |||||||||
| Operating expenses | |||||||||||||||||
| Research and development | 5,913 | 6,179 | 12,622 | 12,308 | |||||||||||||
| Sales and marketing | 19,524 | 21,378 | 39,012 | 42,578 | |||||||||||||
| General and administrative | 7,784 | 8,082 | 15,952 | 15,996 | |||||||||||||
| Amortization of intangibles | 4,291 | 4,483 | 8,526 | 8,898 | |||||||||||||
| Change in fair value of contingent consideration | (15,951 | ) | 306 | (15,508 | ) | 661 | |||||||||||
| Acquisition, restructuring and other items, net | 7,861 | 3,913 | 10,278 | 6,056 | |||||||||||||
| Medical device excise tax | - | 978 | - | 1,981 | |||||||||||||
| Total operating expenses | 29,422 | 45,319 | 70,882 | 88,478 | |||||||||||||
| Operating income | 15,588 | 565 | 19,160 | 777 | |||||||||||||
| Other (expense), net | (1,173 | ) | (1,236 | ) | (1,842 | ) | (2,153 | ) | |||||||||
| Income (loss) before income taxes | 14,415 | (671 | ) | 17,318 | (1,376 | ) | |||||||||||
| Income tax expense (benefit) | 681 | (337 | ) | 2,284 | (267 | ) | |||||||||||
| Net income (loss) | $ | 13,734 | $ | (334 | ) | $ | 15,034 | $ | (1,109 | ) | |||||||
| Earnings (loss) per share | |||||||||||||||||
| Basic | $ | 0.37 | $ | (0.01 | ) | $ | 0.41 | $ | (0.03 | ) | |||||||
| Diluted | $ | 0.37 | $ | (0.01 | ) | $ | 0.41 | $ | (0.03 | ) | |||||||
| Weighted average shares outstanding | |||||||||||||||||
| Basic | 36,807 | 36,140 | 36,606 | 36,051 | |||||||||||||
| Diluted | 37,146 | 36,140 | 37,000 | 36,051 | |||||||||||||
| ANGIODYNAMICS, INC. AND SUBSIDIARIES | |||||||||||||||||
| GAAP TO NON-GAAP RECONCILIATION | |||||||||||||||||
| (in thousands, except per share data) | |||||||||||||||||
| Reconciliation of Gross Profit to non-GAAP Adjusted Gross Profit | |||||||||||||||||
| Three months ended | Six months ended | ||||||||||||||||
| Nov 30, | Nov 30, | Nov 30, | Nov 30, | ||||||||||||||
| 2016 | 2015 | 2016 | 2015 | ||||||||||||||
| (unaudited) | (unaudited) | ||||||||||||||||
| Gross profit | $ | 45,010 | $ | 45,884 | $ | 90,042 | $ | 89,255 | |||||||||
| Recall expenses included in cost of sales | 205 | - | 205 | - | |||||||||||||
| Adjusted gross profit | $ | 45,215 | $ | 45,884 | $ | 90,247 | $ | 89,255 | |||||||||
| Adjusted gross profit % of sales | 50.8 | % | 51.4 | % | 51.0 | % | 51.6 | % | |||||||||
| Reconciliation of Net Income to non-GAAP Adjusted Net Income: | |||||||||||||||||
| Three months ended | Six months ended | ||||||||||||||||
| Nov 30, | Nov 30, | Nov 30, | Nov 30, | ||||||||||||||
| 2016 | 2015 | 2016 | 2015 | ||||||||||||||
| (unaudited) | (unaudited) | ||||||||||||||||
| Net income (loss) | $ | 13,734 | $ | (334 | ) | $ | 15,034 | $ | (1,109 | ) | |||||||
| Recall expenses included in cost of sales | 205 | - | 205 | - | |||||||||||||
| Amortization of intangibles | 4,291 | 4,483 | 8,526 | 8,898 | |||||||||||||
| Change in fair value of contingent consideration | (15,951 | ) | 306 | (15,508 | ) | 661 | |||||||||||
| Acquisition, restructuring and other items, net (1) | 7,861 | 3,913 | 10,278 | 6,056 | |||||||||||||
| Tax effect of non-GAAP items (2) | (3,215 | ) | (3,268 | ) | (5,212 | ) | (5,464 | ) | |||||||||
| Adjusted net income | $ | 6,926 | $ | 5,100 | $ | 13,323 | $ | 9,042 | |||||||||
| Reconciliation of Diluted Earnings Per Share to non-GAAP Adjusted Diluted Earnings Per Share: | |||||||||||||||||
| Three months ended | Six months ended | ||||||||||||||||
| Nov 30, | Nov 30, | Nov 30, | Nov 30, | ||||||||||||||
| 2016 | 2015 | 2016 | 2015 | ||||||||||||||
| (unaudited) | (unaudited) | ||||||||||||||||
| Diluted earnings (loss) per share | $ | 0.37 | $ | (0.01 | ) | $ | 0.41 | $ | (0.03 | ) | |||||||
| Recall expenses included in cost of sales | 0.01 | - | 0.01 | - | |||||||||||||
| Amortization of intangibles | 0.12 | 0.12 | 0.23 | 0.24 | |||||||||||||
| Change in fair value of contingent consideration | (0.43 | ) | 0.01 | (0.42 | ) | 0.02 | |||||||||||
| Acquisition, restructuring and other items, net (1) | 0.21 | 0.11 | 0.28 | 0.17 | |||||||||||||
| Tax effect of non-GAAP items (2) | (0.09 | ) | (0.09 | ) | (0.14 | ) | (0.15 | ) | |||||||||
| Adjusted diluted sharecount effect (4) | (0.00 | ) | 0.00 | - | 0.00 | ||||||||||||
| Adjusted diluted earnings per share | $ | 0.19 | $ | 0.14 | $ | 0.36 | $ | 0.25 | |||||||||
| Adjusted diluted sharecount | 37,146 | 36,256 | 37,000 | 36,399 | |||||||||||||
| (1) Includes costs related to mergers and acquisition activities, integrations, restructurings, asset impairments and write-offs, litigation, and other items. | |||||||||||||||||
| (2) Represents the net tax effect of non-GAAP adjustments. Based on our historical non-GAAP earnings, our tax effect of non-GAAP items has been calculated assuming no valuation allowance on our deferred tax assets and an effective tax rate of 36%. | |||||||||||||||||
| 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 | Six months ended | |||||||||||||||||
| Nov 30, | Nov 30, | Nov 30, | Nov 30, | |||||||||||||||
| 2016 | 2015 | 2016 | 2015 | |||||||||||||||
| (unaudited) | (unaudited) | |||||||||||||||||
| Net income (loss) | $ | 13,734 | $ | (334 | ) | $ | 15,034 | $ | (1,109 | ) | ||||||||
| Income tax expense (benefit) | (681 | ) | 337 | (2,284 | ) | 267 | ||||||||||||
| Other (expense), net | (1,173 | ) | (1,236 | ) | (1,842 | ) | (2,153 | ) | ||||||||||
| Depreciation and amortization | 6,033 | 7,078 | 12,076 | 14,072 | ||||||||||||||
| EBITDA | 21,621 | 7,643 | 31,236 | 14,849 | ||||||||||||||
| Recall expenses included in cost of sales | 205 | - | 205 | - | ||||||||||||||
| Change in fair value of contingent consideration | (15,951 | ) | 306 | (15,508 | ) | 661 | ||||||||||||
| Acquisition, restructuring and other items, net (1,2) | 7,861 | 3,536 | 10,278 | 5,302 | ||||||||||||||
| Credit card fees | 704 | 809 | 1,397 | 1,450 | ||||||||||||||
| Stock-based compensation | 1,701 | 1,234 | 3,385 | 2,860 | ||||||||||||||
| Adjusted EBITDA | $ | 16,141 | $ | 13,528 | $ | 30,993 | $ | 25,122 | ||||||||||
| Per diluted share: | ||||||||||||||||||
| EBITDA | $ | 0.58 | $ | 0.21 | $ | 0.84 | $ | 0.41 | ||||||||||
| Adjusted EBITDA | $ | 0.43 | $ | 0.37 | $ | 0.84 | $ | 0.69 | ||||||||||
| (1) Includes costs related to mergers and acquisition activities, integrations, restructurings, asset impairments and write-offs, litigation, and other items. | ||||||||||||||||||
| (2) Excludes depreciation expense captured in the depreciation and amortization component of the reconciliation. | ||||||||||||||||||
| ANGIODYNAMICS, INC. AND SUBSIDIARIES | ||||||||||||||||||||||||||||||||
| PRELIMINARY NET SALES BY PRODUCT CATEGORY AND BY GEOGRAPHY | ||||||||||||||||||||||||||||||||
| (unaudited in thousands) | ||||||||||||||||||||||||||||||||
| Three months ended | Six months ended | |||||||||||||||||||||||||||||||
| Currency | Constant | Currency | Constant | |||||||||||||||||||||||||||||
| Nov 30, | Nov 30, | % | Impact | Currency | Nov 30, | Nov 30, | % | Impact | Currency | |||||||||||||||||||||||
| 2016 | 2015 | Growth | (Pos) Neg | Growth | 2016 | 2015 | Growth | (Pos) Neg | Growth | |||||||||||||||||||||||
| Net Sales by Product Category | ||||||||||||||||||||||||||||||||
| Peripheral Vascular | $ | 52,895 | $ | 51,055 | 4 | % | $ | 104,304 | $ | 98,161 | 6 | % | ||||||||||||||||||||
| Vascular Access | 23,553 | 25,020 | -6 | % | 48,558 | 49,665 | -2 | % | ||||||||||||||||||||||||
| Oncology/Surgery | 11,780 | 12,471 | -6 | % | 22,844 | 23,805 | -4 | % | ||||||||||||||||||||||||
| Total Excluding Supply Agreement | 88,228 | 88,546 | 0 | % | 0 | % | 0 | % | 175,706 | 171,631 | 2 | % | 1 | % | 3 | % | ||||||||||||||||
| Supply Agreement | 801 | 738 | 9 | % | 0 | % | 9 | % | 1,421 | 1,406 | 1 | % | 0 | % | 1 | % | ||||||||||||||||
| Total | $ | 89,029 | $ | 89,284 | 0 | % | 0 | % | 0 | % | $ | 177,127 | $ | 173,037 | 2 | % | 1 | % | 3 | % | ||||||||||||
| Net Sales by Geography | ||||||||||||||||||||||||||||||||
| United States | $ | 70,782 | $ | 70,653 | 0 | % | 0 | % | 0 | % | $ | 142,535 | $ | 139,022 | 3 | % | 0 | % | 3 | % | ||||||||||||
| International | 17,446 | 17,893 | -2 | % | 1 | % | -1 | % | 33,171 | 32,609 | 2 | % | 1 | % | 3 | % | ||||||||||||||||
| Supply Agreement | 801 | 738 | 9 | % | 0 | % | 9 | % | 1,421 | 1,406 | 1 | % | 0 | % | 1 | % | ||||||||||||||||
| Total | $ | 89,029 | $ | 89,284 | 0 | % | 0 | % | 0 | % | $ | 177,127 | $ | 173,037 | 2 | % | 1 | % | 3 | % | ||||||||||||
| ANGIODYNAMICS, INC. AND SUBSIDIARIES | |||||||
| CONSOLIDATED BALANCE SHEETS | |||||||
| (in thousands) | |||||||
| Nov 30, | May 31, | ||||||
| 2016 | 2016 | ||||||
| (unaudited) | (unaudited) | ||||||
| Assets | |||||||
| Current Assets | |||||||
| Cash and cash equivalents | $ | 35,664 | $ | 32,333 | |||
| Marketable securities | 1,203 | 1,653 | |||||
| Total cash and investments | 36,867 | 33,986 | |||||
| Accounts receivable, net | 50,171 | 52,867 | |||||
| Inventories | 56,667 | 55,370 | |||||
| Prepaid income taxes | 644 | 788 | |||||
| Prepaid expenses and other | 3,453 | 3,243 | |||||
| Total current assets | 147,802 | 146,254 | |||||
| Property, plant and equipment, net | 47,116 | 48,284 | |||||
| Other non-current assets | 1,561 | 3,827 | |||||
| Intangible assets, net | 154,439 | 166,577 | |||||
| Goodwill | 361,252 | 361,252 | |||||
| Total Assets | $ | 712,170 | $ | 726,194 | |||
| Liabilities and Stockholders' Equity | |||||||
| Current Liabilities | |||||||
| Accounts payable | $ | 15,286 | $ | 15,616 | |||
| Accrued liabilities | 20,908 | 21,896 | |||||
| Income taxes payable | 118 | 46 | |||||
| Current portion of long-term debt | 5,000 | 16,250 | |||||
| Current portion of contingent consideration | 9,440 | 12,919 | |||||
| Total current liabilities | 50,752 | 66,727 | |||||
| Long-term debt, net of current portion | 110,163 | 104,291 | |||||
| Deferred income taxes, long-term | 23,750 | 21,684 | |||||
| Contingent consideration, net of current portion | 3,073 | 25,356 | |||||
| Other long-term liabilities | 1,083 | 908 | |||||
| Total Liabilities | 188,821 | 218,966 | |||||
| Stockholders' equity | 523,349 | 507,228 | |||||
| Total Liabilities and Stockholders' Equity | $ | 712,170 | $ | 726,194 | |||
| ANGIODYNAMICS, INC. AND SUBSIDIARIES | ||||||||||||||||
| CONSOLIDATED STATEMENTS OF CASH FLOWS | ||||||||||||||||
| (in thousands) | ||||||||||||||||
| Three months ended | Six months ended | |||||||||||||||
| Nov 30, | Nov 30, | Nov 30, | Nov 30, | |||||||||||||
| 2016 | 2015 | 2016 | 2015 | |||||||||||||
| (unaudited) | (unaudited) | (unaudited) | (unaudited) | |||||||||||||
| Cash flows from operating activities: | ||||||||||||||||
| Net income (loss) | $ | 13,734 | $ | (334 | ) | $ | 15,034 | $ | (1,109 | ) | ||||||
| Adjustments to reconcile net income (loss) to net cash provided by operating activities: | ||||||||||||||||
| Depreciation and amortization | 6,133 | 7,197 | 12,286 | 14,310 | ||||||||||||
| Stock-based compensation | 1,701 | 1,234 | 3,385 | 2,860 | ||||||||||||
| Change in fair value of contingent consideration | (15,951 | ) | 306 | (15,508 | ) | 661 | ||||||||||
| Fixed and intangible asset impairments and disposals | 3,699 | 402 | 3,744 | 622 | ||||||||||||
| Deferred income taxes | 505 | (383 | ) | 2,070 | (591 | ) | ||||||||||
| Change in accounts receivable allowance | (413 | ) | 229 | (610 | ) | 338 | ||||||||||
| Write-off of other assets | 2,685 | - | 2,685 | - | ||||||||||||
| Other | (594 | ) | (248 | ) | (576 | ) | (261 | ) | ||||||||
| Changes in operating assets and liabilities, net of acquisitions: | ||||||||||||||||
| Receivables | 221 | (1,017 | ) | 3,043 | 4,908 | |||||||||||
| Inventories | 1,491 | 3,449 | (1,558 | ) | (3,473 | ) | ||||||||||
| Prepaid and other assets | 401 | 464 | (468 | ) | (2,141 | ) | ||||||||||
| Accounts payable and accrued liabilities | 1,335 | (1,720 | ) | (1,140 | ) | (1,846 | ) | |||||||||
| Net cash provided by (used in) operating activities | 14,947 | 9,579 | 22,387 | 14,278 | ||||||||||||
| Cash flows from investing activities: | ||||||||||||||||
| Additions to property, plant and equipment | (1,365 | ) | (425 | ) | (1,846 | ) | (1,168 | ) | ||||||||
| Proceeds from sale or maturity of marketable securities | 450 | 25 | 450 | 25 | ||||||||||||
| Net cash provided by (used in) investing activities | (915 | ) | (400 | ) | (1,396 | ) | (1,143 | ) | ||||||||
| Cash flows from financing activities: | ||||||||||||||||
| Repayment of long-term debt | (118,910 | ) | (2,500 | ) | (121,410 | ) | (3,750 | ) | ||||||||
| Proceeds from issuance of long-term debt and revolver borrowings | 116,471 | - | 116,471 | - | ||||||||||||
| Deferred financing costs on long-term debt | (1,177 | ) | - | (1,177 | ) | - | ||||||||||
| Payment of Contingent Consideration | (7,750 | ) | (7,750 | ) | (9,850 | ) | (9,850 | ) | ||||||||
| Repurchase of shares | (7,840 | ) | - | (7,840 | ) | - | ||||||||||
| Proceeds from exercise of stock options and ESPP | 3,601 | (49 | ) | 6,404 | 1,230 | |||||||||||
| Net cash provided by (used in) financing activities | (15,605 | ) | (10,299 | ) | (17,402 | ) | (12,370 | ) | ||||||||
| Effect of exchange rate changes on cash | (174 | ) | (152 | ) | (258 | ) | (160 | ) | ||||||||
| Increase (Decrease) in cash and cash equivalents | (1,747 | ) | (1,272 | ) | 3,331 | 605 | ||||||||||
| Cash and cash equivalents | ||||||||||||||||
| Beginning of period | 37,411 | 20,268 | 32,333 | 18,391 | ||||||||||||
| End of period | $ | 35,664 | $ | 18,996 | $ | 35,664 | $ | 18,996 | ||||||||
| ANGIODYNAMICS, INC. AND SUBSIDIARIES | |||||||||||||||||||
| GAAP TO NON-GAAP RECONCILIATION | |||||||||||||||||||
| (in thousands) | |||||||||||||||||||
| Reconciliation of Free Cash Flows: | |||||||||||||||||||
| Three months ended | Six months ended | ||||||||||||||||||
| Nov 30, | Nov 30, | Nov 30, | Nov 30, | ||||||||||||||||
| 2016 | 2015 | 2016 | 2015 | ||||||||||||||||
| (unaudited) | (unaudited) | ||||||||||||||||||
| Net cash provided by (used in) operating activities | $ | 14,947 | $ | 9,579 | $ | 22,387 | $ | 14,278 | |||||||||||
| Additions to property, plant and equipment | (1,365 | ) | (425 | ) | (1,846 | ) | (1,168 | ) | |||||||||||
| Free Cash Flow | $ | 13,582 | $ | 9,154 | $ | 20,541 | $ | 13,110 | |||||||||||