Attached files
| file | filename |
|---|---|
| 8-K - FORM 8K CURRENT REPORT - ANGIODYNAMICS INC | an31719078-8k.htm |
Exhibit 99.1
ANGIODYNAMICS, INC. AND SUBSIDIARIES
CONSOLIDATED INCOME STATEMENTS
As Revised (1)
(in thousands, except per share data)
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Aug 31,
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May 31,
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May 31,
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Feb 28,
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Nov 30,
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Aug 31,
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May 31,
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2014
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2014
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2014
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2014
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2013
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2013
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2013
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||||||||||||||||||||||
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(unaudited)
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(unaudited)
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(unaudited)
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(unaudited)
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(unaudited)
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(unaudited)
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(unaudited)
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Net sales
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$ | 87,331 | $ | 354,425 | $ | 94,060 | $ | 88,150 | $ | 88,571 | $ | 83,644 | $ | 341,916 | ||||||||||||||
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Cost of sales
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41,506 | 174,757 | 46,650 | 43,357 | 43,686 | 41,064 | 173,402 | |||||||||||||||||||||
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Gross profit
|
45,825 | 179,668 | 47,410 | 44,793 | 44,885 | 42,580 | 168,514 | |||||||||||||||||||||
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% of net sales
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52.5 | % | 50.7 | % | 50.4 | % | 50.8 | % | 50.7 | % | 50.9 | % | 49.3 | % | ||||||||||||||
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Operating expenses
|
||||||||||||||||||||||||||||
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Research and development
|
6,718 | 27,486 | 6,729 | 7,045 | 7,003 | 6,709 | 26,319 | |||||||||||||||||||||
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Sales and marketing
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20,067 | 83,200 | 21,464 | 20,700 | 21,073 | 19,963 | 76,121 | |||||||||||||||||||||
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General and administrative
|
7,323 | 26,639 | 7,097 | 6,445 | 6,411 | 6,686 | 26,186 | |||||||||||||||||||||
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Amortization of intangibles
|
4,015 | 16,622 | 3,926 | 4,248 | 4,339 | 4,109 | 16,617 | |||||||||||||||||||||
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Medical device tax
|
995 | 3,829 | 874 | 980 | 999 | 976 | 1,600 | |||||||||||||||||||||
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Change in fair value of contingent consideration
|
801 | (1,808 | ) | 673 | (4,154 | ) | 940 | 733 | 1,583 | |||||||||||||||||||
|
Acquisition, restructuring and other
|
2,664 | 10,760 | 3,063 | 3,016 | 2,679 | 2,002 | 13,800 | |||||||||||||||||||||
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Total operating expenses
|
42,583 | 166,728 | 43,826 | 38,280 | 43,444 | 41,178 | 162,226 | |||||||||||||||||||||
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Operating income
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3,242 | 12,940 | 3,584 | 6,513 | 1,441 | 1,402 | 6,288 | |||||||||||||||||||||
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Other income (expense), net
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(1,824 | ) | (7,200 | ) | (1,474 | ) | (1,970 | ) | (1,791 | ) | (1,965 | ) | (7,875 | ) | ||||||||||||||
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Income (loss) before income taxes
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1,418 | 5,740 | 2,110 | 4,543 | (350 | ) | (563 | ) | (1,587 | ) | ||||||||||||||||||
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Provision for (benefit from) income taxes
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948 | 3,074 | 3,325 | 28 | (89 | ) | (190 | ) | (376 | ) | ||||||||||||||||||
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Net income (loss)
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$ | 470 | $ | 2,666 | $ | (1,215 | ) | $ | 4,515 | $ | (261 | ) | $ | (373 | ) | $ | (1,211 | ) | ||||||||||
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Earnings (loss) per common share
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||||||||||||||||||||||||||||
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Basic
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$ | 0.01 | $ | 0.08 | $ | (0.03 | ) | $ | 0.13 | $ | (0.01 | ) | $ | (0.01 | ) | $ | (0.03 | ) | ||||||||||
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Diluted
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$ | 0.01 | $ | 0.08 | $ | (0.03 | ) | $ | 0.13 | $ | (0.01 | ) | $ | (0.01 | ) | $ | (0.03 | ) | ||||||||||
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Weighted average common shares
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Basic
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35,367 | 35,136 | 35,278 | 35,184 | 35,132 | 34,950 | 34,817 | |||||||||||||||||||||
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Diluted
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35,885 | 35,440 | 35,278 | 35,704 | 35,132 | 34,950 | 34,817 | |||||||||||||||||||||
(1) Revised, as previously disclosed in the Company’s Form 10-Q for the quarterly period ended August 31, 2014, filed October 15, 2014.
ANGIODYNAMICS, INC. AND SUBSIDIARIES
GAAP TO NON-GAAP RECONCILIATION
As Revised (1)
(in thousands, except per share data)
|
Reconciliation of Net Income to non-GAAP Adjusted Net Income:
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Aug 31,
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May 31,
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May 31,
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Feb 28,
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Nov 30,
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Aug 31,
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May 31,
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2014
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2014
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2014
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2014
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2013
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2013
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2013
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(unaudited)
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(unaudited)
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(unaudited)
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(unaudited)
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(unaudited)
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(unaudited)
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(unaudited)
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Net income (loss)
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$ | 470 | $ | 2,666 | $ | (1,215 | ) | $ | 4,515 | $ | (261 | ) | $ | (373 | ) | $ | (1,211 | ) | ||||||||||
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Amortization of intangibles
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4,015 | 16,622 | 3,926 | 4,248 | 4,339 | 4,109 | 16,617 | |||||||||||||||||||||
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Change in fair value of contingent consideration
|
801 | (1,808 | ) | 673 | (4,154 | ) | 940 | 733 | 1,583 | |||||||||||||||||||
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Inventory step-up
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- | 150 | - | 75 | 75 | - | 3,845 | |||||||||||||||||||||
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Quality Call to Action Program
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- | - | - | - | - | - | 850 | |||||||||||||||||||||
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Impact of NYS tax reform legislation
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- | 1,173 | 1,173 | - | - | - | - | |||||||||||||||||||||
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Acquisition, restructuring and other (2)
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2,664 | 10,760 | 3,063 | 3,016 | 2,679 | 2,002 | 13,800 | |||||||||||||||||||||
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Tax effect of non-GAAP items (3)
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(2,300 | ) | (9,583 | ) | (1,415 | ) | (2,793 | ) | (2,893 | ) | (2,483 | ) | (13,190 | ) | ||||||||||||||
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Adjusted net income
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$ | 5,650 | $ | 19,980 | $ | 6,205 | $ | 4,907 | $ | 4,879 | $ | 3,988 | $ | 22,294 | ||||||||||||||
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Reconciliation of Diluted Earnings Per Share to non-GAAP Adjusted Diluted Earnings Per Share:
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Year ended
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Year ended
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Aug 31,
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May 31,
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May 31,
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Feb 28,
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Nov 30,
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Aug 31,
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May 31,
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| 2014 | 2014 | 2014 | 2014 | 2013 | 2013 | 2013 | ||||||||||||||||||||||
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(unaudited)
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(unaudited)
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(unaudited)
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(unaudited)
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(unaudited)
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(unaudited)
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(unaudited)
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Diluted earnings (loss) per share
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$ | 0.01 | $ | 0.08 | $ | (0.03 | ) | $ | 0.13 | $ | (0.01 | ) | $ | (0.01 | ) | $ | (0.03 | ) | ||||||||||
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Amortization of intangibles
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0.11 | 0.47 | 0.11 | 0.12 | 0.12 | 0.12 | 0.47 | |||||||||||||||||||||
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Change in fair value of contingent consideration
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0.02 | (0.05 | ) | 0.02 | (0.12 | ) | 0.03 | 0.02 | 0.04 | |||||||||||||||||||
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Inventory step-up
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- | 0.00 | - | 0.00 | 0.00 | - | 0.11 | |||||||||||||||||||||
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Quality Call to Action Program
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- | - | - | - | - | - | 0.02 | |||||||||||||||||||||
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Impact of NYS tax reform legislation
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- | 0.03 | 0.03 | - | - | - | - | |||||||||||||||||||||
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Acquisition, restructuring and other (2)
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0.07 | 0.30 | 0.09 | 0.08 | 0.08 | 0.06 | 0.39 | |||||||||||||||||||||
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Tax effect of non-GAAP items (3)
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(0.06 | ) | (0.27 | ) | (0.04 | ) | (0.08 | ) | (0.08 | ) | (0.07 | ) | (0.37 | ) | ||||||||||||||
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Adjusted diluted earnings per share
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$ | 0.16 | $ | 0.56 | $ | 0.17 | $ | 0.14 | $ | 0.14 | $ | 0.11 | $ | 0.63 | ||||||||||||||
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Adjusted diluted sharecount
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35,885 | 35,440 | 35,653 | 35,704 | 35,348 | 35,100 | 35,354 | |||||||||||||||||||||
(1) Revised, as previously disclosed in the Company’s Form 10-Q for the quarterly period ended August 31, 2014, filed October 15, 2014.
(2) Includes costs related to acquisitions, integrations, restructurings, debt refinancing, litigation, and other items.
(3) Represents the net tax effect of non-GAAP adjustments.
ANGIODYNAMICS, INC. AND SUBSIDIARIES
GAAP TO NON-GAAP RECONCILIATION (Continued)
As Revised (1)
(in thousands, except per share data)
|
Reconciliation of Net Income to EBITDA and Adjusted EBITDA:
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Three months
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Year
ended |
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ended |
Year
ended |
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Aug 31,
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May 31,
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May 31,
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Feb 28,
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Nov 30,
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Aug 31,
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May 31,
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2014
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2014
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2014
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2014
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2013
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2013
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2013
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|
(unaudited)
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(unaudited)
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(unaudited)
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(unaudited)
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(unaudited)
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(unaudited)
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(unaudited)
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Net income (loss)
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$ | 470 | $ | 2,666 | $ | (1,215 | ) | $ | 4,515 | $ | (261 | ) | $ | (373 | ) | $ | (1,211 | ) | ||||||||||
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Provision for (benefit from) income taxes
|
948 | 3,074 | 3,325 | 28 | (89 | ) | (190 | ) | (376 | ) | ||||||||||||||||||
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Other income (expense), net
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1,824 | 7,200 | 1,474 | 1,970 | 1,791 | 1,965 | 7,875 | |||||||||||||||||||||
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Depreciation and amortization
|
6,685 | 28,157 | 7,044 | 7,243 | 7,123 | 6,747 | 27,227 | |||||||||||||||||||||
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EBITDA
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9,927 | 41,097 | 10,628 | 13,756 | 8,564 | 8,149 | 33,515 | |||||||||||||||||||||
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Change in fair value of contingent consideration
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801 | (1,808 | ) | 673 | (4,154 | ) | 940 | 733 | 1,583 | |||||||||||||||||||
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Acquisition, restructuring and other (2,3)
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2,289 | 10,010 | 2,688 | 2,641 | 2,679 | 2,002 | 13,800 | |||||||||||||||||||||
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Quality Call to Action Program
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- | - | - | - | - | - | 850 | |||||||||||||||||||||
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Inventory step-up
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- | 150 | - | 75 | 75 | - | 3,845 | |||||||||||||||||||||
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Stock-based compensation
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1,395 | 5,502 | 1,480 | 1,599 | 1,271 | 1,152 | 4,609 | |||||||||||||||||||||
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Adjusted EBITDA
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$ | 14,412 | $ | 54,951 | $ | 15,469 | $ | 13,917 | $ | 13,529 | $ | 12,036 | $ | 58,202 | ||||||||||||||
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Per diluted share:
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EBITDA
|
$ | 0.28 | $ | 1.15 | $ | 0.30 | $ | 0.39 | $ | 0.24 | $ | 0.23 | $ | 0.95 | ||||||||||||||
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Adjusted EBITDA
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$ | 0.40 | $ | 1.54 | $ | 0.43 | $ | 0.39 | $ | 0.38 | $ | 0.34 | $ | 1.65 | ||||||||||||||
(1) Revised, as previously disclosed in the Company’s Form 10-Q for the quarterly period ended August 31, 2014, filed October 15, 2014.
(2) Includes costs related to acquisitions, integrations, restructurings, debt refinancing, litigation, and other items.
(3) Excludes $375 of depreciation expense for each of Q1 FY15, Q4 FY14, Q3 FY14 and $750 for FY14 captured in the depreciation and amortization component of this reconciliation.
ANGIODYNAMICS, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
As Revised (1)
(in thousands)
|
Aug 31,
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May 31,
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2014
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2014
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(unaudited)
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(unaudited)
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Assets
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Current Assets
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Cash and cash equivalents
|
$ | 13,808 | $ | 16,105 | ||||
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Marketable securities
|
1,670 | 1,809 | ||||||
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Total cash and investments
|
15,478 | 17,914 | ||||||
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Receivables, net
|
56,026 | 61,968 | ||||||
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Inventories, net
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70,421 | 61,234 | ||||||
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Deferred income taxes
|
3,667 | 4,625 | ||||||
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Prepaid income taxes
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1,936 | 510 | ||||||
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Prepaid expenses and other
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6,777 | 5,471 | ||||||
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Total current assets
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154,305 | 151,722 | ||||||
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Property, plant and equipment, net
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66,794 | 66,590 | ||||||
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Intangible assets, net
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201,440 | 205,256 | ||||||
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Goodwill
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360,473 | 360,473 | ||||||
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Deferred income taxes
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9,236 | 10,403 | ||||||
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Other non-current assets
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3,866 | 4,447 | ||||||
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Total Assets
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$ | 796,114 | $ | 798,891 | ||||
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Liabilities and Stockholders' Equity
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Accounts payable and accrued expenses
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$ | 46,982 | $ | 49,547 | ||||
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Current portion of long-term debt
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5,000 | 5,000 | ||||||
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Current portion of contingent consideration
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10,897 | 12,879 | ||||||
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Other current liabilities
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828 | 1,288 | ||||||
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Total current liabilities
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63,707 | 68,714 | ||||||
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Long-term debt, net of current portion
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136,410 | 137,660 | ||||||
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Contingent consideration, net of current portion
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55,135 | 54,452 | ||||||
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Other long-term liabilities
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1,178 | 1,230 | ||||||
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Total Liabilities
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256,430 | 262,056 | ||||||
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Stockholders' equity
|
539,684 | 536,835 | ||||||
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Total Liabilities and Stockholders' Equity
|
$ | 796,114 | $ | 798,891 | ||||
(1) Revised, as previously disclosed in the Company’s Form 10-Q for the quarterly period ended August 31, 2014, filed October 15, 2014.
ANGIODYNAMICS, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
As Revised (1)
(in thousands)
|
Three months
ended |
Year
ended |
Nine months
ended |
Six months
ended |
Three months
ended |
Year
ended |
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Aug 31,
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May 31,
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Feb 28,
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Nov 30,
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Aug 31,
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May 31,
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2014
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2014
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2014
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2013
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2013
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2013
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(unaudited)
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(unaudited)
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(unaudited)
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(unaudited)
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(unaudited)
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(unaudited)
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Cash flows from operating activities:
|
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Net income (loss)
|
$ | 470 | $ | 2,666 | $ | 3,881 | $ | (634 | ) | $ | (373 | ) | $ | (1,211 | ) | |||||||||
|
Depreciation and amortization
|
6,685 | 28,157 | 21,113 | 13,870 | 6,747 | 27,227 | ||||||||||||||||||
|
Amortization of acquired inventory basis step-up
|
- | 150 | 150 | 75 | - | 3,845 | ||||||||||||||||||
|
Tax effect of exercise of stock options
|
- | (146 | ) | (146 | ) | (146 | ) | (61 | ) | (1,644 | ) | |||||||||||||
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Stock-based compensation
|
1,395 | 5,502 | 4,022 | 2,423 | 1,152 | 4,609 | ||||||||||||||||||
|
Change in fair value of contingent consideration
|
801 | (1,808 | ) | (2,481 | ) | 1,673 | 733 | 1,583 | ||||||||||||||||
|
Deferred income taxes
|
2,110 | 2,951 | 1,700 | 1,155 | 569 | 666 | ||||||||||||||||||
|
Changes in accounts receivable allowance
|
127 | 465 | 281 | 312 | 195 | 338 | ||||||||||||||||||
|
Gain on sale of assets
|
- | - | - | - | - | (711 | ) | |||||||||||||||||
|
Loss on discontinuance of product offering
|
- | - | - | - | - | 1,416 | ||||||||||||||||||
|
Other
|
190 | (17 | ) | (50 | ) | (24 | ) | (47 | ) | 157 | ||||||||||||||
|
Changes in operating assets and liabilities
|
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Receivables
|
5,815 | (14,786 | ) | (9,668 | ) | (123 | ) | 1,793 | 1,020 | |||||||||||||||
|
Inventories
|
(9,187 | ) | (5,608 | ) | (3,491 | ) | (4,351 | ) | (3,473 | ) | (1,909 | ) | ||||||||||||
|
Prepaid expenses and other
|
(2,821 | ) | 497 | (2,958 | ) | (1,882 | ) | (1,212 | ) | 977 | ||||||||||||||
|
Accounts payable and accrued liabilities
|
(233 | ) | 6,658 | 2,821 | 3,410 | 1,277 | (9,711 | ) | ||||||||||||||||
|
Net cash provided by (used in) operating activities
|
5,352 | 24,681 | 15,174 | 15,758 | 7,300 | 26,652 | ||||||||||||||||||
|
Cash flows from investing activities:
|
||||||||||||||||||||||||
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Additions to property, plant and equipment
|
(5,104 | ) | (11,172 | ) | (9,003 | ) | (7,191 | ) | (2,903 | ) | (12,120 | ) | ||||||||||||
|
Acquisition of businesses, net of cash acquired
|
- | (4,169 | ) | (4,169 | ) | (4,169 | ) | (4,169 | ) | (24,474 | ) | |||||||||||||
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Acquisition of intangible assets
|
(154 | ) | (1,435 | ) | (180 | ) | (150 | ) | - | (800 | ) | |||||||||||||
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Other cash flows from investing activities
|
- | - | - | - | - | 801 | ||||||||||||||||||
|
Change in escrow receivable
|
- | - | - | - | - | 2,500 | ||||||||||||||||||
|
Purchases, sales and maturities of marketable securities, net
|
- | 328 | 328 | 303 | 303 | 11,855 | ||||||||||||||||||
|
Net cash provided by (used in) investing activities
|
(5,258 | ) | (16,448 | ) | (13,024 | ) | (11,207 | ) | (6,769 | ) | (22,238 | ) | ||||||||||||
|
Cash flows from financing activities:
|
||||||||||||||||||||||||
|
Repayment of long-term debt
|
(1,250 | ) | (146,250 | ) | (145,000 | ) | (143,750 | ) | - | (7,500 | ) | |||||||||||||
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Proceeds from issuance of long-term debt
|
- | 100,000 | 100,000 | 100,000 | - | - | ||||||||||||||||||
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Proceeds from borrowings on revolving credit facility
|
- | 46,410 | 41,410 | 41,410 | ||||||||||||||||||||
|
Proceeds from exercise of stock options and ESPP
|
959 | 2,444 | 2,208 | 1,133 | 678 | 1,214 | ||||||||||||||||||
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Payment of Contingent Consideration
|
(2,100 | ) | (15,943 | ) | (14,597 | ) | (9,300 | ) | (950 | ) | - | |||||||||||||
|
Deferred financing costs on long-term debt
|
- | (677 | ) | (677 | ) | (677 | ) | - | - | |||||||||||||||
|
Net cash provided by (used in) financing activities
|
(2,391 | ) | (14,016 | ) | (16,656 | ) | (11,184 | ) | (272 | ) | (6,286 | ) | ||||||||||||
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Effect of exchange rate changes on cash
|
- | 86 | 86 | 4 | 4 | (65 | ) | |||||||||||||||||
|
Increase (Decrease) in cash and cash equivalents
|
(2,297 | ) | (5,697 | ) | (14,420 | ) | (6,629 | ) | 263 | (1,937 | ) | |||||||||||||
|
Cash and cash equivalents
|
||||||||||||||||||||||||
|
Beginning of period
|
16,105 | 21,802 | 21,802 | 21,802 | 21,802 | 23,739 | ||||||||||||||||||
|
End of period
|
$ | 13,808 | $ | 16,105 | $ | 7,382 | $ | 15,173 | $ | 22,065 | $ | 21,802 | ||||||||||||
(1) Revised, as previously disclosed in the Company’s Form 10-Q for the quarterly period ended August 31, 2014, filed October 15, 2014.