AngioDynamics Inc.01.11.16
AngioDynamics Inc.'s second fiscal quarter was a disappointing one for the company.
Sales slipped 3.1 percent to $89.2 million -- marginally higher than the Zacks Consensus Estimate of $89 million -- but nevertheless down from the same quarter last year ($92.1 million) due to lower sales, foreign exchange headwinds and contracting margins.
On a constant currency basis and excluding the impact of the Morpheus product discontinuance, net sales were down 1 percent compared to the second quarter last year.
Second-quarter peripheral vascular sales grew 3 percent to $51.1 million but vascular access proceeds fell 10 percent to $25 million, primarily due to lower PICC sales (down 13 percent). During the quarter (ended Nov. 30), the company installed 20 Celerity systems and achieved clearances for the device in Europe.
Oncology/Surgery sales slid 9 percent to $12.4 million, with NanoKnife disposable sales increasing 29 percent in the United States and 15 percent internationally.
The company’s Fluid Management (FM) business increased revenues 3 percent in the United States. BioFlo PICC sales surged 16 percent, but port sales fell 7 percent. Both BioFlo Ports and Dialysis grew 15 percent and 72 percent, respectively.
Overall U.S. sales decreased 2 percent to $70.7 million and international revenue fell 6.3 percent to $17.8 million, sidelined by a 5 percent negative impact on revenues from foreign currency headwinds.
“As we begin the second half of our fiscal year, we are moving past the Morpheus withdrawal and foreign currency headwinds that have impacted our recent top line performance. We are now fully focused on building on our improved operational foundation to continue our commercial momentum, especially with our growth driver products,” DeVivo said.
The company’s GAAP net loss was $400,000, or 1 cents loss per share, compared to a net income of $1.3 million, or 4 cents per share, in the second quarter of fiscal 2015.
Earnings before interest, taxes, depreciation and amortization (EBITDA) was $8.4 million, or 23 cents per share, compared to $11.9 million, or 33 cents per share, a year ago. Adjusted EBITDA was $13.4 million, or 37 cents per share, compared to $15.9 million, or 44 cents per share, in the year ago comparable period.
In the second quarter, the company generated $9.6 million in operating cash flow. At Nov. 30, cash and investments were $20.6 million and debt was $133.9 million.
Notable first-half achievements include:
Sales slipped 3.1 percent to $89.2 million -- marginally higher than the Zacks Consensus Estimate of $89 million -- but nevertheless down from the same quarter last year ($92.1 million) due to lower sales, foreign exchange headwinds and contracting margins.
to lower sales, foreign exchange headwinds and contracting margins. Sales declined 3.2% on a year-over-year basis to $89.2 million and were marginally higher than the Zacks Consensus Estimate of $89 million. - See more at: http://www.zacks.com/stock/news/203207/angiodynamics-q2-earnings-in-line-sales-top-16-view-cut#sthash.8R0yGI1p.dpuf
“In the second quarter, we managed the business effectively, despite lingering headwinds, and generated net sales of $89.2 million and adjusted EPS of $0.14, both of which were in the mid-range of our guidance,” President/CEO Joseph M. DeVivo said. “Our team has worked diligently to build a culture committed to quality and compliance and, in the quarter, our efforts were validated when the FDA removed the remaining warning letters against the company. Additionally, we continue to execute our operational excellence plans and expect to complete the manufacturing transition from Queensbury [N.Y.] to Glens Falls in January, which will further increase our operating leverage and improve cash flow generation. AngioDynamics now has a strong operational and regulatory foundation that we believe will contribute to top line growth, margin expansion and continued strong cash flow from operations. On a constant currency basis and excluding the impact of the Morpheus product discontinuance, net sales were down 1 percent compared to the second quarter last year.
Second-quarter peripheral vascular sales grew 3 percent to $51.1 million but vascular access proceeds fell 10 percent to $25 million, primarily due to lower PICC sales (down 13 percent). During the quarter (ended Nov. 30), the company installed 20 Celerity systems and achieved clearances for the device in Europe.
Oncology/Surgery sales slid 9 percent to $12.4 million, with NanoKnife disposable sales increasing 29 percent in the United States and 15 percent internationally.
The company’s Fluid Management (FM) business increased revenues 3 percent in the United States. BioFlo PICC sales surged 16 percent, but port sales fell 7 percent. Both BioFlo Ports and Dialysis grew 15 percent and 72 percent, respectively.
Overall U.S. sales decreased 2 percent to $70.7 million and international revenue fell 6.3 percent to $17.8 million, sidelined by a 5 percent negative impact on revenues from foreign currency headwinds.
“As we begin the second half of our fiscal year, we are moving past the Morpheus withdrawal and foreign currency headwinds that have impacted our recent top line performance. We are now fully focused on building on our improved operational foundation to continue our commercial momentum, especially with our growth driver products,” DeVivo said.
The company’s GAAP net loss was $400,000, or 1 cents loss per share, compared to a net income of $1.3 million, or 4 cents per share, in the second quarter of fiscal 2015.
Earnings before interest, taxes, depreciation and amortization (EBITDA) was $8.4 million, or 23 cents per share, compared to $11.9 million, or 33 cents per share, a year ago. Adjusted EBITDA was $13.4 million, or 37 cents per share, compared to $15.9 million, or 44 cents per share, in the year ago comparable period.
In the second quarter, the company generated $9.6 million in operating cash flow. At Nov. 30, cash and investments were $20.6 million and debt was $133.9 million.
Notable first-half achievements include:
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The Company received letters from the U.S. Food and Drug Administration (FDA) closing out warning letters it received in January 2011 regarding certain promotional activities related to the NanoKnife System, in May 2011 related to the company's Queensbury facility and in November 2014 related to the Glens Falls, N.Y., and Marlborough, Mass., facilities. These actions resolved all outstanding FDA warning letters against AngioDynamics.
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The company received eight regulatory clearances for products in various international markets, a total of 16 in the first half of the 2016 fiscal year.
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The NanoKnife System was approved by South Korea's Ministry of Food and Drug Safety for the ablation of soft tissue. The company is selling the NanoKnife system to healthcare providers in South Korea through exclusive distribution partnerships. NanoKnife is now approved in 45 countries worldwide.
- The Americas Hepato-Pancreato-Billiary Association (AHPBA) registered its first patient into a registry to capture patient and effectiveness data on the use of Irreversible Electroporation (IRE) utilizing NanoKnife for patients with pancreatic cancer.