In the latest market close, AngioDynamics (ANGO) reached $5.99, with a +1.7% movement compared to the previous day. The stock's change was less than the S&P 500's daily gain of 2.11%. Elsewhere, the Dow gained 1.18%, while the tech-heavy Nasdaq added 2.96%.The the stock of medical device maker has fallen by 1.83% in the past month, lagging the Medical sector's gain of 3.98% and the S&P 500's gain of 3.08%.The investment community will be closely monitoring the performance of AngioDynamics in its forthcoming ...

AngioDynamics, Inc. (ANGO) recently announced the completion of the sale of its PICC and Midline product portfolios to Spectrum Vascular for $45 million in cash.AngioDynamics' PICC, Midline, and tip location products are the subject of the transaction. During AngioDynamics' fiscal 2023, the combined portfolio of products contributed more than $43.5 million in revenues annually.Price PerformanceFor the past six months, ANGO’s shares have declined 28.1% against the industry’s rise of 7.8%. The S&P 500 increas ...

AngioDynamics (ANGO) closed the latest trading day at $6.17, indicating a +1.31% change from the previous session's end. The stock's performance was ahead of the S&P 500's daily gain of 0.58%. Elsewhere, the Dow gained 0.91%, while the tech-heavy Nasdaq added 0.3%.Coming into today, shares of the medical device maker had gained 3.4% in the past month. In that same time, the Medical sector gained 2.39%, while the S&P 500 gained 4.61%.Investors will be eagerly watching for the performance of AngioDynamics in ...

Company Performance - AngioDynamics (ANGO) stock closed at $6.09, reflecting a -0.98% change from the previous day, underperforming the S&P 500 which gained 0.57% [1] - Over the last month, AngioDynamics shares increased by 1.49%, lagging behind the Medical sector's gain of 2.05% and the S&P 500's gain of 5.07% [1] - The upcoming earnings release is anticipated, with projected earnings per share (EPS) of -$0.12, indicating a 300% decrease from the same quarter last year, and expected revenue of $78.23 million, a 3.08% decline year-over-year [1] Full Year Estimates - For the full year, analysts expect earnings of -$0.39 per share and revenue of $320.79 million, representing changes of -550% and -5.3% from the previous year [2] - Recent changes to analyst estimates may reflect short-term business dynamics, with positive adjustments indicating a favorable outlook on the company's health and profitability [2] Zacks Rank and Industry Performance - The Zacks Rank system rates AngioDynamics at 4 (Sell), with the consensus EPS estimate remaining unchanged over the last 30 days [3] - The Medical - Instruments industry, part of the Medical sector, holds a Zacks Industry Rank of 158, placing it in the bottom 38% of over 250 industries [3] - The Zacks Industry Rank is based on the average Zacks Rank of individual stocks, with top-rated industries outperforming the bottom half by a factor of 2 to 1 [3]

Company Overview - AngioDynamics, Inc. (ANGO) received FDA clearance for the Auryon XL Catheter, a 225-cm radial access catheter, for use with the Auryon Atherectomy System in treating Peripheral Arterial Disease (PAD) [1] - The Auryon XL Catheter expands access points in atherectomy procedures, potentially reducing access site complications and accelerating patient recovery [1][4] - The catheter is available in sizes of 0.9 mm and 1.5 mm, and may decrease serious bleeding occurrences compared to traditional femoral access [4] - The Auryon XL Catheter is the first non-orbital atherectomy device, setting a new benchmark for laser atherectomy technology [4] - AngioDynamics plans to launch the Auryon XL Catheter in a full market rollout in February 2024 after a limited market launch in January [4][5] Financial Performance - Over the past six months, ANGO's shares have decreased by 31.0%, while the industry declined by 5.0% and the S&P 500 increased by 6.6% [2] Industry Insights - The global atherectomy system market was valued at $621.8 million in 2021 and is projected to grow at a rate of 6.0%, expected to exceed $1.1 billion by 2031 [6] - The growth in the atherectomy system market is driven by the increasing demand for less invasive surgical procedures and the rising prevalence of cardiovascular diseases [6]

AngioDynamics, Inc. (ANGO) reported an adjusted loss per share of 5 cents for second-quarter fiscal 2024, against the year-ago earnings per share (EPS) of a penny. However, the adjusted loss per share was narrower than the Zacks Consensus Estimate of a loss of 9 cents per share.Excluding Dialysis and BioSentry, on a pro-forma basis, adjusted loss per share in second-quarter fiscal 2024 was also 5 cents, narrower than the adjusted loss per share of 9 cents in the year-ago period.GAAP loss per share was 72 ce ...

[Part I: Financial Information](index=4&type=section&id=Part%20I%3A%20Financial%20Information) [Financial Statements](index=4&type=section&id=Item%201.%20Financial%20Statements) This section presents the unaudited consolidated financial statements for the quarterly period ended November 30, 2023 - On June 8, 2023, the company completed the sale of its dialysis and BioSentry businesses for **$100.0 million in cash**, resulting in a pre-tax book gain of **$47.8 million**[37](index=37&type=chunk) - On January 5, 2024, the company announced a plan to shift its New York manufacturing operations to a **fully outsourced model**, expected to be completed in Q3 FY2026[106](index=106&type=chunk) [Consolidated Statements of Operations](index=4&type=section&id=Consolidated%20Statements%20of%20Operations) The company reported a Q2 net loss of $29.0 million, a significant increase from the prior-year period's $8.5 million loss Consolidated Statements of Operations Highlights (unaudited, in thousands) | Metric | Three Months Ended Nov 30, 2023 | Three Months Ended Nov 30, 2022 | Six Months Ended Nov 30, 2023 | Six Months Ended Nov 30, 2022 | | :--- | :--- | :--- | :--- | :--- | | **Net sales** | $79,073 | $85,429 | $157,752 | $166,966 | | **Gross profit** | $40,262 | $45,078 | $80,322 | $87,383 | | **Operating income (loss)** | $(13,120) | $(8,115) | $21,910 | $(21,416) | | **Net income (loss)** | $(29,048) | $(8,486) | $16,836 | $(21,490) | | **Diluted EPS** | $(0.72) | $(0.21) | $0.42 | $(0.55) | [Consolidated Balance Sheets](index=6&type=section&id=Consolidated%20Balance%20Sheets) Total assets decreased to $499.6 million while total liabilities were significantly reduced due to debt extinguishment Balance Sheet Summary (unaudited, in thousands) | Metric | Nov 30, 2023 | May 31, 2023 | | :--- | :--- | :--- | | **Cash and cash equivalents** | $60,896 | $44,620 | | **Total current assets** | $185,468 | $163,542 | | **Total assets** | $499,623 | $532,637 | | **Total current liabilities** | $78,037 | $83,825 | | **Long-term debt** | $0 | $49,818 | | **Total liabilities** | $98,397 | $154,341 | | **Total Stockholders' Equity** | $401,226 | $378,296 | [Consolidated Statements of Cash Flows](index=7&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) Investing activities provided $96.6 million from an asset sale, while financing activities used $59.9 million for debt repayment Cash Flow Summary (unaudited, in thousands) | Activity | Six Months Ended Nov 30, 2023 | Six Months Ended Nov 30, 2022 | | :--- | :--- | :--- | | **Net cash used in operating activities** | $(20,633) | $(17,246) | | **Net cash provided by (used in) investing activities** | $96,649 | $(6,072) | | **Net cash (used in) provided by financing activities** | $(59,942) | $24,479 | | **Net increase in cash and cash equivalents** | $16,276 | $1,032 | [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=25&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses a 7.4% revenue decrease in Q2 FY2024, driven by divestitures, and an improved liquidity position [Results of Operations](index=27&type=section&id=Results%20of%20Operations) Q2 FY2024 net sales decreased by $6.4 million year-over-year, primarily due to the impact of business divestitures Net Sales by Segment (in thousands) | Segment | Three Months Ended Nov 30, 2023 | Three Months Ended Nov 30, 2022 | $ Change | | :--- | :--- | :--- | :--- | | Med Tech | $25,363 | $24,502 | $861 | | Med Device | $53,710 | $60,927 | $(7,217) | | **Total** | **$79,073** | **$85,429** | **$(6,356)** | Gross Profit by Segment (in thousands) | Segment | Three Months Ended Nov 30, 2023 | Three Months Ended Nov 30, 2022 | Gross Margin % (2023) | Gross Margin % (2022) | | :--- | :--- | :--- | :--- | :--- | | Med Tech | $15,816 | $15,614 | 62.4% | 63.7% | | Med Device | $24,446 | $29,464 | 45.5% | 48.4% | | **Total** | **$40,262** | **$45,078** | **50.9%** | **52.8%** | - R&D expense **increased by $1.8 million** for the three months ended Nov 30, 2023, primarily due to the timing of projects and clinical spend[129](index=129&type=chunk) - General and administrative expense **decreased by $1.5 million** for the three months ended Nov 30, 2023, driven by lower compensation and benefits expenses[130](index=130&type=chunk) [Liquidity and Capital Resources](index=31&type=section&id=Liquidity%20and%20Capital%20Resources) The company's liquidity strengthened with cash rising to $60.9 million after repaying its entire $50.0 million debt - Cash and cash equivalents totaled **$60.9 million** as of November 30, 2023, an increase from $44.6 million as of May 31, 2023[137](index=137&type=chunk) - The company had **no outstanding debt** as of November 30, 2023, as the Credit Agreement was extinguished in connection with the divestiture[137](index=137&type=chunk) - Key financing activities in the first six months of FY2024 included a **$50.0 million repayment** of the Credit Agreement and a **$10.0 million contingent consideration payment**[141](index=141&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=33&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company's primary market risks include foreign currency fluctuations and a limited concentration of credit risk - The company is exposed to market risk from changes in currency exchange rates, particularly the Euro, British Pound, and Canadian Dollar[146](index=146&type=chunk)[147](index=147&type=chunk) - Concentration of credit risk is limited as **no single customer represents more than 10% of total sales**[149](index=149&type=chunk) [Controls and Procedures](index=34&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that the company's disclosure controls and procedures were effective as of November 30, 2023 - The Chief Executive Officer and Chief Financial Officer concluded that the company's disclosure controls and procedures were **effective** as of the end of the period covered by the report[151](index=151&type=chunk) - There were **no material changes** in internal control over financial reporting during the fiscal quarter ended November 30, 2023[152](index=152&type=chunk) [Part II: Other Information](index=35&type=section&id=Part%20II%3A%20Other%20Information) [Legal Proceedings](index=35&type=section&id=Item%201.%20Legal%20Proceedings) The company is involved in ongoing patent litigation, but a potential loss is not yet considered probable or estimable - The company is involved in multiple patent infringement lawsuits with C.R. Bard, Inc. regarding its implantable port products, with a jury trial scheduled for April 29, 2024[96](index=96&type=chunk)[97](index=97&type=chunk) - For the ongoing legal proceedings, the company has **not recorded an expense** because a potential loss is not yet probable or reasonably estimable[97](index=97&type=chunk)[98](index=98&type=chunk)[99](index=99&type=chunk) [Risk Factors](index=35&type=section&id=Item%201A.%20Risk%20Factors) A key future risk involves the potential need for additional financing for growth, which may not be available on favorable terms - Following the sale of businesses and repayment of debt, the company may require additional financing for future growth, which **may not be available on favorable terms**[157](index=157&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=35&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company repurchased a small number of shares from employees to satisfy tax withholding obligations on vested equity awards Issuer Purchases of Equity Securities (Q2 FY2024) | Period | Total Shares Purchased | Average Price Paid per Share | | :--- | :--- | :--- | | Sep 2023 | 0 | $7.26 | | Oct 2023 | 1,802 | $6.81 | | Nov 2023 | 733 | $6.65 | | **Total** | **2,535** | **$6.76** | - The shares were purchased from employees to satisfy tax withholding requirements and **not as part of a publicly announced repurchase program**[159](index=159&type=chunk) [Other Information](index=35&type=section&id=Item%205.%20Other%20Information) No directors or officers adopted or terminated a Rule 10b5-1 trading arrangement during the quarter - **No directors or officers adopted or terminated** a "Rule 10b5-1 trading arrangement" or a "non-Rule 10b5-1 trading arrangement" during the quarter[161](index=161&type=chunk)

Financial Data and Key Metrics Changes - Revenue for Q2 FY 2024 was $79.1 million, representing a year-over-year growth of approximately 3% [8][19] - Adjusted EPS was a loss of $0.05, an improvement from a loss of $0.09 in the same quarter last year [26] - Gross margin for Q2 FY 2024 was 50.9%, a decrease of 80 basis points compared to the prior year [22][23] Business Line Data and Key Metrics Changes - Med Tech revenue was $25.4 million, a 3.5% year-over-year increase, while Med Device revenue was $53.7 million, growing 2.3% [19] - Mechanical thrombectomy revenue, including AngioVac and AlphaVac, declined 4.7% year-over-year [20] - NanoKnife sales grew approximately 2.8% during the quarter, with total NanoKnife sales up 16.7% year-to-date [12][21] Market Data and Key Metrics Changes - International business grew 12.6% year-over-year, with double-digit growth from both Med Tech and Med Device segments [14] - The U.S. market saw a decline in probe sales for NanoKnife, while capital sales grew robustly by 22.8% [21] Company Strategy and Development Direction - The company is transitioning to a fully outsourced manufacturing model, expected to drive annualized savings of approximately $15 million by FY 2027 [15][16] - Focus remains on portfolio optimization and driving growth in both Med Tech and Med Device businesses [7][18] - Anticipated product launches and regulatory approvals are set to open larger, high-growth markets [17][70] Management's Comments on Operating Environment and Future Outlook - Management acknowledged headwinds in the thrombectomy business but remains optimistic about future growth driven by new product introductions and regulatory approvals [9][37] - The company expects FY 2024 revenue to be in the range of $320 million to $325 million, down from previous guidance [27] - Management emphasized the importance of training and preparing sales teams for upcoming product launches and market expansions [38][39] Other Important Information - Research and development expenses increased to $8.7 million, representing 10.9% of sales, compared to 8.8% of sales a year ago [25] - The company has zero debt on the balance sheet and cash and cash equivalents increased to $60.9 million [26] Q&A Session Summary Question: Will gross margin continue to decrease until the shift to third-party manufacturing is complete? - Management indicated that while there may be fluctuations, the most significant benefits will come at the end of the two-year transition period [33][34] Question: What factors are expected to drive sales increases in thrombectomy? - Management highlighted the breakthrough designation for AngioVac and anticipated FDA approvals as key drivers for future sales growth [36][37] Question: Can you elaborate on the headwinds faced by AngioVac? - Management noted that AngioVac serves a smaller market and emphasized the importance of new sales leadership and training to address challenges [41][42] Question: What improvements are expected with AlphaVac 2? - Management discussed unique design elements of AlphaVac that enhance usability and safety, with pricing positioned competitively in the market [44][46] Question: What is the logistical process for moving to a fully outsourced model? - Management explained that the transition will occur over two years, with established protocols and supplier partnerships already in place [55][56]

AngioDynamics Second Quarter 2024 Earnings Presentation Forward-Looking Statement Notice Regarding Forward-Looking Statements This presentation 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 ...

Table of Content UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended August 31, 2023 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 | --- | |--------------------------------------------------------------------------------------------| | For the transition period from to Commission file number 0-50761 | | AngioDyn ...