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 ...

Financial Data and Key Metrics Changes - Revenue for Q1 FY '24 was $78 million, representing a year-over-year growth of approximately 6%, driven by a 13% increase in the MedTech segment [8][20] - Adjusted pro forma EPS was a loss of $0.13, in line with expectations, excluding approximately $700,000 in sales from divested businesses [8][26] - Gross margin for Q1 FY '24 was 50.8%, a decrease of 20 basis points compared to the previous year [23] Business Line Data and Key Metrics Changes - MedTech revenue was $25.9 million, a 13.3% year-over-year increase, while Med Device revenue was $52.1 million, growing 2.3% compared to the first quarter of FY '23 [20] - NanoKnife business grew approximately 36% during the first quarter, with sales of probes growing 35% [11] - Mechanical thrombectomy business, including AngioVac and AlphaVac, declined roughly 6% year-over-year, with AngioVac revenue at $6.3 million, down 7.7% from the prior year [13][21] Market Data and Key Metrics Changes - International businesses grew 26% year-over-year, with strong growth from both MedTech and Med Device segments [12] - U.S. disposable growth for NanoKnife was 28%, while international markets saw a 44% growth [35] Company Strategy and Development Direction - The company aims to address treatment gaps in high-growth markets, focusing on cardiovascular disease and cancer [9] - Plans to submit data to the FDA in Q3 2024 to support an expanded indication for NanoKnife to treat prostate tissue [10] - The company is pursuing plans to gain an indication for Auryon to treat coronary artery disease [17] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the growth potential of NanoKnife and the mechanical thrombectomy business, highlighting positive physician feedback [11][38] - The company anticipates FY '24 revenue in the range of $328 million to $333 million, with expected gross margins of 50% to 52% [29][30] Other Important Information - The company revised its annual equity grant practice for non-employee directors, impacting adjusted loss per share for the quarter [26] - Cash and cash equivalents at the end of Q1 FY '24 were $57.6 million, up from $44.6 million at the end of FY '23 [28] Q&A Session Summary Question: Can you break out NanoKnife growth U.S. versus internationally? - U.S. disposable growth was 28%, while international growth was about 44% [35] Question: What is the outlook for AlphaVac growth? - AlphaVac is expected to improve with ongoing clinical studies and design enhancements planned for next year [38] Question: Can you provide an update on Auryon installations? - The company finished the quarter with approximately 415 total lasers in the field, with a focus on driving utilization rather than new system placements [41] Question: What is the sustainability of NanoKnife performance internationally? - The company believes the strong growth is sustainable, supported by training and clinical support for partners [44] Question: How is the company balancing Med Tech growth with cash generation from Med Device? - The company aims to grow its Med Tech segment while maintaining stability from the Med Device segment, which currently provides cash flow [49]

Part I [Business](index=5&type=section&id=Item%201.%20Business) AngioDynamics is a medical technology company specializing in devices for vascular health, cancer treatment, and patient quality of life - The company is structured into two business segments: Med Tech, which includes high-growth platforms like Auryon, Thrombectomy, and NanoKnife, and Med Device, which comprises a broader portfolio of established products[16](index=16&type=chunk)[196](index=196&type=chunk) - AngioDynamics sells its products in the U.S. primarily through a direct sales force and internationally through a combination of direct sales and distributor relationships, targeting various medical specialists[44](index=44&type=chunk) - The company faces significant competition from major medical device manufacturers and is subject to comprehensive regulation by the FDA in the U.S. and similar bodies internationally, including the European Union's MDR[42](index=42&type=chunk)[53](index=53&type=chunk)[61](index=61&type=chunk) [Overview and History](index=5&type=section&id=Item%201.%20Business%20-%20Overview%20and%20History) Founded in 1988, AngioDynamics is a medical technology company focused on vascular health and cancer treatment - AngioDynamics was founded in **1988** and is headquartered in Latham, N.Y. It is publicly traded on NASDAQ under the symbol ANGO[13](index=13&type=chunk)[15](index=15&type=chunk) - The company's growth has been fueled by key acquisitions, such as RITA Medical Systems (ablation), Oncobionic (NanoKnife), and Eximo Medical (Auryon laser atherectomy technology)[13](index=13&type=chunk)[15](index=15&type=chunk) [Products](index=6&type=section&id=Item%201.%20Business%20-%20Products) The company's products are divided into two segments, Med Tech and Med Device, offering advanced technologies for peripheral artery disease, thrombus management, soft tissue ablation, and a broad range of vascular access devices - The Med Tech segment features high-growth products: the Auryon Atherectomy System, the AlphaVac and AngioVac Mechanical Thrombectomy Systems, and the NanoKnife Ablation System[16](index=16&type=chunk)[17](index=17&type=chunk)[22](index=22&type=chunk) - The Med Device segment includes a comprehensive portfolio of core peripheral products, vascular access devices featuring BioFlo with Endexo Technology (a polymer blend resistant to thrombus accumulation), and various ablation technologies[23](index=23&type=chunk)[25](index=25&type=chunk)[35](index=35&type=chunk) [Operations and Strategy](index=13&type=section&id=Item%201.%20Business%20-%20Operations%20and%20Strategy) AngioDynamics' strategy relies on continuous innovation, strategic acquisitions, and physician collaboration, competing on quality, clinical outcomes, and cost-effectiveness with manufacturing primarily in-house - The company's growth depends on continuous innovation through internal R&D, technology licensing, and strategic acquisitions[41](index=41&type=chunk) - Primary competitors include Boston Scientific, Medtronic, Johnson & Johnson, and Inari Medical. Competition is based on quality, clinical outcomes, and increasingly, price[42](index=42&type=chunk)[43](index=43&type=chunk) - Manufacturing is conducted at owned facilities in New York and through a third-party supplier in Costa Rica. The company experienced a backlog of **$2.7 million** at the end of fiscal **2023** due to manufacturing and supply chain issues[46](index=46&type=chunk)[48](index=48&type=chunk)[49](index=49&type=chunk) [Regulation and Reimbursement](index=14&type=section&id=Item%201.%20Business%20-%20Regulation%20and%20Reimbursement) The company's products are subject to extensive regulation by the FDA and international bodies, requiring clearances and compliance with quality systems, with commercial success dependent on third-party reimbursement - Products are regulated by the FDA, generally requiring **510(k)** clearance or, more rarely, a PMA. Manufacturing facilities are subject to periodic FDA inspections for compliance with Quality System Regulation (QSR)[53](index=53&type=chunk)[54](index=54&type=chunk)[58](index=58&type=chunk) - For sales in the European Union, products must comply with the Medical Device Regulation (MDR), which has increased clinical data requirements and extended certification timeframes to **12-18 months** or longer[61](index=61&type=chunk) - The business is subject to healthcare laws like the Anti-kickback Statute and the False Claims Act. Commercial success is highly dependent on obtaining adequate reimbursement from governmental and private third-party payors[64](index=64&type=chunk)[65](index=65&type=chunk) [Risk Factors](index=20&type=section&id=Item%201A.%20Risk%20Factors) The company faces numerous risks, including intense competition, reliance on new technologies, single-source suppliers, and extensive government regulation [Business and Industry Risks](index=20&type=section&id=Item%201A.%20Risk%20Factors%20-%20Business%20and%20Industry%20Risks) Key business risks include intense competition, reliance on new product development and clinical trial success, supply chain vulnerabilities, and the impact of recent divestitures and macroeconomic factors - The company faces intense competition and pricing pressure, and its growth relies heavily on the successful market development and clinical trial results of its high-growth products (NanoKnife, AlphaVac, Auryon)[86](index=86&type=chunk)[91](index=91&type=chunk) - The company is dependent on single-source suppliers and third-party international distributors, which accounted for approximately **72%** of international revenues in fiscal **2023**[101](index=101&type=chunk)[104](index=104&type=chunk) - The recent divestiture of the dialysis and BioSentry businesses to Merit Medical for **$100.0 million** presents a risk if the company cannot successfully replace the associated revenue and cash flow with higher-growth initiatives[112](index=112&type=chunk)[113](index=113&type=chunk) - Labor shortages in fiscal years **2022** and **2023** significantly contributed to production backlogs[120](index=120&type=chunk) [Regulatory and Legal Risks](index=29&type=section&id=Item%201A.%20Risk%20Factors%20-%20Regulatory%20and%20Legal%20Risks) The company operates under a complex system of laws and regulations, where non-compliance can lead to severe penalties, recalls, and operational suspensions, with lengthy and costly approval processes - The company is subject to extensive federal, state, and international laws (FDCA, FCPA, HIPAA, GDPR), and failure to comply can result in significant fines, penalties, and business disruption[149](index=149&type=chunk)[151](index=151&type=chunk) - Obtaining and maintaining regulatory approvals like FDA **510(k)** or PMA is costly and time-consuming. The transition to the EU's new Medical Device Regulation (MDR) has increased the time and resources required for certification[155](index=155&type=chunk)[157](index=157&type=chunk)[159](index=159&type=chunk) - In fiscal year **2023**, the company generated **$1.2 million** in revenue from sales to distributors doing business in Iran, which is subject to changing U.S. laws and regulations[166](index=166&type=chunk) [Intellectual Property and Stock Price Risks](index=32&type=section&id=Item%201A.%20Risk%20Factors%20-%20Intellectual%20Property%20and%20Stock%20Price%20Risks) The company's success depends on protecting its intellectual property and navigating patent litigation, while its stock price is subject to volatility from market fluctuations and unpredictable results - The company's success depends on protecting its intellectual property. It faces risks from patent litigation, which could result in significant costs, royalty payments, or injunctions against selling products[168](index=168&type=chunk)[171](index=171&type=chunk) - The company's stock price may be volatile due to factors like fluctuating operating results, competition, and market conditions, which are often beyond its control[173](index=173&type=chunk)[174](index=174&type=chunk) [Unresolved Staff Comments](index=34&type=section&id=Item%201B.%20Unresolved%20Staff%20Comments) The company reports that it has no unresolved staff comments from the SEC - None[177](index=177&type=chunk) [Properties](index=34&type=section&id=Item%202.%20Properties) AngioDynamics operates from several locations, including a leased corporate headquarters in Latham, NY, and two owned manufacturing facilities in Glens Falls and Queensbury, NY | Location | Purpose | Approx. Sq. Ft. | Property Type | | :--- | :--- | :--- | :--- | | Latham, NY | Corporate headquarters | **39,000 Sq. Ft.** | Lease | | Glens Falls, NY | Manufacturing | **21,000 Sq. Ft.** | Owned | | Queensbury, NY | Manufacturing | **135,000 Sq. Ft.** | Owned | | Queensbury, NY | Distribution | **58,000 Sq. Ft.** | Lease | | Marlborough, MA | Research and development | **8,400 Sq. Ft.** | Lease | | Amsterdam, NL | Selling, marketing and administrative | **8,100 Sq. Ft.** | Lease | | Rehovot, IL | Research and development | **4,300 Sq. Ft.** | Lease | [Legal Proceedings](index=34&type=section&id=Item%203.%20Legal%20Proceedings) The company is involved in multiple patent infringement lawsuits with C.R. Bard, Inc. concerning its implantable port products, with ongoing trials and appeals - The company is engaged in ongoing, multi-case patent litigation with C.R. Bard, Inc. regarding its implantable port products[439](index=439&type=chunk)[440](index=440&type=chunk) - In one case, a jury found infringement in November **2022**, but the Court issued a judgment in favor of AngioDynamics in June **2023**, invalidating the patent claims. Bard has appealed this decision[440](index=440&type=chunk) - Due to the uncertainty of the litigation outcomes, the company has not recorded any financial accrual for potential losses[439](index=439&type=chunk)[440](index=440&type=chunk)[441](index=441&type=chunk) [Mine Safety Disclosures](index=34&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This item is not applicable to the company's business - Not applicable[180](index=180&type=chunk) Part II [Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities](index=35&type=section&id=Item%205.%20Market%20for%20Registrant's%20Common%20Equity,%20Related%20Stockholder%20Matters%20and%20Issuer%20Purchases%20of%20Equity%20Securities) AngioDynamics' common stock trades on the NASDAQ under the symbol "ANGO", experiencing significant volatility in fiscal year 2023, with no cash dividends paid in the last three fiscal years - The company's common stock is traded on the NASDAQ under the symbol "ANGO"[181](index=181&type=chunk) | Fiscal Year 2023 | High | Low | | :--- | :--- | :--- | | Fourth Quarter | **$12.65** | **$8.29** | | Third Quarter | **$15.48** | **$12.06** | | Second Quarter | **$22.81** | **$12.51** | | First Quarter | **$24.30** | **$17.83** | - The company has not paid cash dividends for the last three fiscal years and does not plan to in the foreseeable future[183](index=183&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=37&type=section&id=Item%207.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) In fiscal year **2023**, AngioDynamics' revenue grew **7.1%** to **$338.8 million**, driven by Med Tech, but gross margin declined to **51.4%** due to inflation and product mix, resulting in a net loss of **$52.4 million** [Overview and Strategic Initiatives](index=37&type=section&id=Item%207.%20MD%26A%20-%20Overview%20and%20Strategic%20Initiatives) AngioDynamics is transforming into a focused medical technology company by prioritizing high-growth Med Tech platforms and streamlining its portfolio through strategic divestitures and product pipeline advancements - The company is transforming to focus on high-growth medical technology, shifting away from mature, lower-growth markets[200](index=200&type=chunk) - A significant strategic action was the sale of the dialysis product portfolio and BioSentry system to Merit Medical for **$100.0 million**, which was finalized on June **8**, **2023**[197](index=197&type=chunk) - Key growth initiatives include expanding the Auryon platform, gaining FDA clearance for the AlphaVac F18 thrombectomy system, and advancing clinical studies for AlphaVac (APEX) and NanoKnife (PRESERVE)[201](index=201&type=chunk) [Results of Operations (FY2023 vs. FY2022)](index=42&type=section&id=Item%207.%20MD%26A%20-%20Results%20of%20Operations) For fiscal year **2023**, total net sales increased **7.1%** to **$338.8 million**, with Med Tech growing **22.8%**, but gross margin declined to **51.4%** and the company reported a net loss of **$52.4 million** | (in thousands) | FY 2023 | FY 2022 | $ Change | | :--- | :--- | :--- | :--- | | **Net Sales** | | | | | Med Tech | **$96,687** | **$78,717** | **$17,970** | | Med Device | **$242,065** | **$237,502** | **$4,563** | | **Total** | **$338,752** | **$316,219** | **$22,533** | | (in thousands) | FY 2023 | FY 2022 | $ Change | | :--- | :--- | :--- | :--- | | **Gross Profit** | **$174,246** | **$165,732** | **$8,514** | | **Gross Margin %** | **51.4%** | **52.4%** | **-1.0 p.p.** | - The company recorded a goodwill impairment charge of **$14.5 million** in FY**2023** related to the Med Device reporting unit[234](index=234&type=chunk)[235](index=235&type=chunk) | (in thousands, except per share) | FY 2023 | FY 2022 | | :--- | :--- | :--- | | **Operating Loss** | **$(51,181)** | **$(28,471)** | | **Net Loss** | **$(52,442)** | **$(26,547)** | | **Loss Per Share (Diluted)** | **$(1.33)** | **$(0.68)** | [Liquidity and Capital Resources](index=47&type=section&id=Item%207.%20MD%26A%20-%20Liquidity%20and%20Capital%20Resources) As of May **31**, **2023**, AngioDynamics had **$44.6 million** in cash and **$50.0 million** in debt, with positive cash from operations and subsequent debt extinguishment from asset sale proceeds | (in thousands) | May 31, 2023 | May 31, 2022 | | :--- | :--- | :--- | | Cash and cash equivalents | **$44,620** | **$28,825** | | Total Debt | **$50,000** | **$25,000** | | (in thousands) | FY 2023 | FY 2022 | | :--- | :--- | :--- | | Cash from Operating Activities | **$78** | **$(7,194)** | | Cash used in Investing Activities | **$(9,746)** | **$(19,307)** | | Cash from Financing Activities | **$25,420** | **$7,683** | - Subsequent to fiscal year-end, on June **8**, **2023**, the company used proceeds from the sale of its dialysis and BioSentry businesses to repay all amounts owed under its Credit Agreement, extinguishing the facility[246](index=246&type=chunk)[454](index=454&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=50&type=section&id=Item%207A.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company is exposed to market risks from foreign currency exchange rates, interest rate fluctuations on its variable-rate debt, and credit concentration, with trade receivables credit risk limited by a diverse customer base - The company is exposed to foreign currency risk, as approximately **4.7%** of FY**2023** sales were in foreign currencies. A stronger U.S. dollar negatively impacts sales and gross profit[253](index=253&type=chunk) - Interest rate risk stems from the variable-rate Credit Agreement. As of May **31**, **2023**, the interest rate on the **$50.0 million** outstanding debt was **6.73%**[254](index=254&type=chunk) - Credit risk from trade receivables is considered limited as no single customer accounts for more than **10%** of total sales[256](index=256&type=chunk) [Financial Statements and Supplementary Data](index=50&type=section&id=Item%208.%20Financial%20Statements%20and%20Supplementary%20Data) This section incorporates by reference the company's audited consolidated financial statements and supplementary data, which are included in Part IV of the report - This item refers to the full financial statements and supplementary data indexed under Item **15**[257](index=257&type=chunk) [Controls and Procedures](index=51&type=section&id=Item%209A.%20Controls%20and%20Procedures) Management, including the CEO and CFO, concluded that the company's disclosure controls and internal control over financial reporting were effective as of May **31**, **2023**, with an unqualified audit opinion from Deloitte & Touche LLP - The CEO and CFO concluded that the company's disclosure controls and procedures were effective as of May **31**, **2023**[259](index=259&type=chunk) - Management concluded that the company's internal control over financial reporting was effective as of May **31**, **2023**, based on the COSO framework[261](index=261&type=chunk) - The independent auditor, Deloitte & Touche LLP, provided an unqualified opinion on the effectiveness of the company's internal control over financial reporting[262](index=262&type=chunk)[266](index=266&type=chunk) Part III Part III of the Form **10-K**, covering Items **10** through **14**, incorporates information by reference from the company's definitive proxy statement for its **2023** Annual Meeting of Stockholders [Directors, Executive Officers, Compensation, Security Ownership, and Accountant Fees](index=54&type=section&id=Items%2010,%2011,%2012,%2013,%20and%2014) Information required for Items **10** through **14** is incorporated by reference from the company's Proxy Statement, to be filed within **120** days of the fiscal year-end - Information regarding directors, executive compensation, security ownership, and other governance matters is incorporated by reference from the forthcoming **2023** Proxy Statement[273](index=273&type=chunk)[274](index=274&type=chunk)[275](index=275&type=chunk) Part IV [Exhibits, Financial Statement Schedules](index=55&type=section&id=Item%2015.%20Exhibits,%20Financial%20Statement%20Schedules) This part contains the company's consolidated financial statements, the report of the independent registered public accounting firm (Deloitte & Touche LLP), and financial statement schedules, with an unqualified opinion and identified Critical Audit Matters - The independent auditor, Deloitte & Touche LLP, issued an unqualified opinion on the consolidated financial statements for the three years ended May **31**, **2023**[285](index=285&type=chunk) - The audit identified two Critical Audit Matters: the reserve for excess and obsolete inventory due to significant estimation of future demand, and the valuation of goodwill for the Med Device reporting unit following a divestiture-related triggering event[289](index=289&type=chunk)[292](index=292&type=chunk) [Consolidated Statements of Operations](index=58&type=section&id=Consolidated%20Statements%20of%20Operations) For the fiscal year ended May **31**, **2023**, AngioDynamics reported net sales of **$338.8 million**, a gross profit of **$174.2 million**, and a net loss of **$52.4 million** or **($1.33)** per diluted share | (in thousands, except per share) | 2023 | 2022 | 2021 | | :--- | :--- | :--- | :--- | | Net sales | **$338,752** | **$316,219** | **$291,010** | | Gross profit | **$174,246** | **$165,732** | **$156,788** | | Operating loss | **$(51,181)** | **$(28,471)** | **$(35,283)** | | Net loss | **$(52,442)** | **$(26,547)** | **$(31,548)** | | Loss per share (Diluted) | **$(1.33)** | **$(0.68)** | **$(0.82)** | [Consolidated Balance Sheets](index=60&type=section&id=Consolidated%20Balance%20Sheets) As of May **31**, **2023**, AngioDynamics had total assets of **$532.6 million**, total liabilities of **$154.3 million**, and total stockholders' equity of **$378.3 million** | (in thousands) | May 31, 2023 | May 31, 2022 | | :--- | :--- | :--- | | **Total Current Assets** | **$163,542** | **$143,345** | | **Total Assets** | **$532,637** | **$552,751** | | **Total Current Liabilities** | **$83,825** | **$74,324** | | **Total Liabilities** | **$154,341** | **$128,262** | | **Total Stockholders' Equity** | **$378,296** | **$424,489** | [Consolidated Statements of Cash Flows](index=62&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) For the fiscal year ended May **31**, **2023**, net cash provided by operating activities was **$0.1 million**, with a net increase in cash and cash equivalents of **$15.8 million**, ending the year with **$44.6 million** | (in thousands) | Year Ended May 31, 2023 | | :--- | :--- | | Net cash provided by (used in) operating activities | **$78** | | Net cash used in investing activities | **$(9,746)** | | Net cash provided by (used in) financing activities | **$25,420** | | **Net increase in cash and cash equivalents** | **$15,795** | | **Cash and cash equivalents at end of year** | **$44,620** |

AngioDynamics, Inc. (NASDAQ:ANGO) Q4 2023 Earnings Conference Call July 12, 2023 8:00 AM ET Company Participants Jim Clemmer - President and Chief Executive Officer Steve Trowbridge - Executive Vice President and Chief Financial Officer Conference Call Participants Jason Bedford - Raymond James Bill Plovanic - Canaccord Genuity Matthew Mishan - KeyBanc Capital Markets Operator Good morning, and welcome to the AngioDynamics Fourth Quarter and Fiscal Year 2023 Earnings Call. At this time, all participants are ...

1 ANGIODYNAMICS Fourth Quarter 2023 Earnings Presentation July 12, 2023 Forward-Looking Statement Notice Regarding Forward-LookingStatements 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 an ...

ANGIODYNAMICS Third Quarter 2023 Earnings Presentation March 30, 2023 1 Forward-Looking Statement Notice Regarding Forward-LookingStatements 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 an ...