AngioDynamics Reports Fiscal 2019 Fourth Quarter and Full-Year Financial Results

AngioDynamics, Inc. (NASDAQ: ANGO), a leading provider of innovative, minimally invasive medical devices for vascular access, peripheral vascular disease, and oncology, today announced financial results for the fourth quarter of fiscal year 2019, which ended May 31, 2019.

“Fiscal year 2019 was an exciting and transformative year for AngioDynamics. I am very pleased with our fourth quarter and full-year performance, as we achieved solid revenue growth and continued to implement meaningful operational improvements,” commented Jim Clemmer, President and Chief Executive Officer of AngioDynamics, Inc. “During the quarter, we strengthened our balance sheet and made significant progress towards our long-term portfolio management goals through the sale of our NAMIC Fluid Management business, setting us on a path towards becoming a leaner, more innovation-focused company. We also made significant strides with our NanoKnife platform, enrolling the first patient in our DIRECT study for pancreatic cancer and receiving FDA approval to initiate a pilot study for the treatment of prostate cancer. I am extremely proud of all of the members of our AngioDynamics team for their hard work during the year, and I look forward to sustaining and growing this momentum throughout fiscal year 2020.”

Fourth Quarter 2019 Financial Results

Net sales for the fourth quarter of fiscal 2019 were $96.3 million, an increase of 9.0%, compared to $88.3 million a year ago. Foreign currency translation did not have a significant impact on the Company’s sales in the quarter.

• Oncology net sales were $15.3 million, an increase of 26.5% from $12.1 million a year ago. Strong sales of Solero, along with the recent BioSentry and RadiaDyne acquisitions, more than offset lower NanoKnife capital sales during the quarter.
• Vascular Interventions and Therapies net sales were $56.2 million, an increase of 6.9%, compared to $52.6 million a year ago, as strong growth in AngioVac and our Core product line offerings was partially offset by a decline in the Venous Insufficiency business.
• Vascular Access net sales were $24.8 million, an increase of 4.9% from $23.7 million a year ago, driven by higher sales of midlines, ports and dialysis.

U.S. net sales in the fourth quarter of fiscal 2019 were $73.4 million, an increase of 4.4% from $70.3 million a year ago, and International net sales were $22.9 million, an increase of 27.0% from $18.0 million a year ago.

Gross margin for the fourth quarter of fiscal 2019 was 53.6%, roughly flat compared to the year ago quarter as improvements in net productivity and higher volume were offset by negative impacts of price and product mix.

The Company recorded net income of $58.9 million, or $1.54 per share, in the fourth quarter of fiscal 2019. This compares to net income of approximately $2.1 million, or $0.06 per share, a year ago. Net income was favorably impacted in the fourth quarter of fiscal 2019 by the gain on the sale of the NAMIC fluid management business of $46.6 million.

Excluding the items shown in the non-GAAP reconciliation table below, adjusted net income for the fourth quarter of fiscal 2019 was $9.6 million, or $0.25 per share, compared to adjusted net income of $7.7 million, or $0.20 per share, in the fourth quarter of fiscal 2018.

Adjusted EBITDAS in the fourth quarter of fiscal 2019, excluding the items shown in the reconciliation table below, was $17.6 million, compared to $15.6 million in the fourth quarter of fiscal 2018.

In the fourth quarter of fiscal 2019, the Company generated $25.0 million in operating cash flow and had capital expenditures of $0.9 million. As of May 31, 2019, the Company had $227.6 million in cash and cash equivalents and $132.5 million in debt, excluding the impact of deferred financing costs.

Full-Year 2019 Financial Results

For the twelve months ended May 31, 2019:

• Net sales were $359.5 million, an increase of 4.4%, compared to $344.3 million for the same period a year ago.
• The Company's net income was $61.3 million, or $1.61 per share, compared to net income of $16.3 million, or $0.44 per share, a year ago.
• Gross margin improved 200 basis points to 53.4% from 51.4% a year ago.
• Excluding the items shown in the non-GAAP reconciliation table below, adjusted net income was $31.6 million, or $0.83 per share, compared to adjusted net income of $27.6 million, or $0.74 per share, a year ago.
• Adjusted EBITDAS, excluding the items shown in the reconciliation table below, was $61.5 million, compared to $57.0 million for the same period a year ago.

Pro Forma 2019 Performance

In addition to actual results, the tables accompanying this press release reflect pro forma results, which exclude the full-year impact of the NAMIC Fluid Management business that was divested on May 31, 2019.

Fiscal Year 2020 Financial Guidance

The Company expects its fiscal year 2020 net sales to be in the range of $280 to $286 million and adjusted earnings per share in the range of $0.25 to $0.30. Additionally, the Company expects gross margin to be in the range of 58% to 59%.

Conference Call

The Company’s management will host a conference call today at 8:00 a.m. ET to discuss its fiscal fourth quarter and full-year 2019 results.

To participate in the conference call, dial 1-877-407-0784 (domestic) or 1-201-689-8560 (international) and refer to the passcode 13691777.

This conference call will also be webcast and can be accessed from the “Investors” section of the AngioDynamics website at www.angiodynamics.com. The webcast replay of the call will be available at the same site approximately one hour after the end of the call.

A recording of the call will also be available from 11:00 a.m. ET on Wednesday, July 10, 2019, until 11:59 p.m. ET on Wednesday, July 17, 2019. To hear this recording, dial 1-844-512-2921 (domestic) or 1-412-317-6671 (international) and enter the passcode 13691777.

Use of Non-GAAP Measures

Management uses non-GAAP measures to establish operational goals and believes that non-GAAP measures may assist investors in analyzing the underlying trends in AngioDynamics' business over time. Investors should consider these non-GAAP measures in addition to, not as a substitute for or as superior to, financial reporting measures prepared in accordance with GAAP. In this news release, AngioDynamics has reported adjusted EBITDAS, adjusted net income, adjusted earnings per share and free cash flow. Management uses these measures in its internal analysis and review of operational performance. Management believes that these measures provide investors with useful information in comparing AngioDynamics' performance over different periods. By using these non-GAAP measures, management believes that investors get a better picture of the performance of AngioDynamics' underlying business. Management encourages investors to review AngioDynamics' financial results prepared in accordance with GAAP to understand AngioDynamics' performance taking into account all relevant factors, including those that may only occur from time to time but have a material impact on AngioDynamics' financial results. Please see the tables that follow for a reconciliation of non-GAAP measures to measures prepared in accordance with GAAP.

About AngioDynamics, Inc.

AngioDynamics, Inc. is a leading provider of innovative, minimally invasive medical devices used by professional healthcare providers for vascular access, peripheral vascular disease, and oncology. AngioDynamics’ diverse product lines include market-leading ablation systems, vascular access products, angiographic products and accessories, drainage products, thrombolytic products and venous products. For more information, visit www.angiodynamics.com.

Safe Harbor

This release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. All statements regarding AngioDynamics' expected future financial position, results of operations, cash flows, business strategy, budgets, projected costs, capital expenditures, products, competitive positions, growth opportunities, plans and objectives of management for future operations, as well as statements that include the words such as "expects," "reaffirms," "intends," "anticipates," "plans," "believes," "seeks," "estimates," "optimistic," or variations of such words and similar expressions, are forward-looking statements. These forward-looking statements are not guarantees of future performance and are subject to risks and uncertainties. Investors are cautioned that actual events or results may differ from AngioDynamics' expectations. Factors that may affect the actual results achieved by AngioDynamics include, without limitation, the ability of AngioDynamics to develop its existing and new products, technological advances and patents attained by competitors, infringement of AngioDynamics' technology or assertions that AngioDynamics' technology infringes the technology of fourth parties, the ability of AngioDynamics to effectively compete against competitors that have substantially greater resources, future actions by the FDA or other regulatory agencies, domestic and foreign health care reforms and government regulations, results of pending or future clinical trials, overall economic conditions, the results of on-going litigation, challenges with respect to fourth-party distributors or joint venture partners or collaborators, the results of sales efforts, the effects of product recalls and product liability claims, changes in key personnel, the ability of AngioDynamics to execute on strategic initiatives, the effects of economic, credit and capital market conditions, general market conditions, market acceptance, foreign currency exchange rate fluctuations, the effects on pricing from group purchasing organizations and competition, the ability of AngioDynamics to integrate acquired businesses, as well as the risk factors listed from time to time in AngioDynamics' SEC filings, including but not limited to its Annual Report on Form 10-K for the year ended May 31, 2018. AngioDynamics does not assume any obligation to publicly update or revise any forward-looking statements for any reason.

In the United States, the NanoKnife System has received a 510(k) clearance by the Food and Drug Administration for use in the surgical ablation of soft tissue and is similarly approved for commercialization in Canada, the European Union, and Australia. The NanoKnife System has not been cleared for the treatment or therapy of a specific disease or condition.

ANGIODYNAMICS, INC. AND SUBSIDIARIES
CONSOLIDATED INCOME STATEMENTS
(in thousands, except per share data)
				Three months ended						Three months ended
				Actual		Pro Forma Adjustments		Pro Forma		Actual		Pro Forma Adjustments		Pro Forma
				May 31,		May 31,		May 31,		May 31,		May 31,		May 31,
				2019		2019		2019		2018		2018		2018
				(unaudited)						(unaudited)
Net sales				$ 96,300		$ (25,118)		$ 71,182		$ 88,317		$ (22,124)		$ 66,193
Cost of sales (exclusive of intangible amortization)				44,695		(14,844)		29,851		40,850		(13,276)		27,574
Gross profit				51,605		(10,274)		41,331		47,467		(8,848)		38,619
% of net sales				53.6%		40.9%		58.1%		53.7%		40.0%		58.3%
Operating expenses
Research and development				7,200		(308)		6,892		6,454		(286)		6,168
Sales and marketing				21,843		(1,068)		20,775		20,898		(1,059)		19,839
General and administrative				8,561		(73)		8,488		7,946		(69)		7,877
Amortization of intangibles				5,126		(669)		4,457		4,202		(683)		3,519
Change in fair value of contingent consideration				(7,641)		-		(7,641)		32		-		32
Acquisition, restructuring and other items, net				5,427		-		5,427		3,500		-		3,500
Total operating expenses				40,516		(2,118)		38,398		43,032		(2,097)		40,935
Operating income				11,089		(8,156)		2,933		4,435		(6,751)		(2,316)
Interest expense, net				(1,410)		-		(1,410)		(839)		-		(839)
Other income (expense), net				46,457		(46,592)		(135)		(269)		-		(269)
Total other expense, net				45,047		(46,592)		(1,545)		(1,108)		-		(1,108)
Income before income taxes				56,136		(54,748)		1,388		3,327		(6,751)		(3,424)
Income tax expense (benefit)				(2,737)		1,372		(1,365)		1,225		(2,166)		(941)
Net income				$ 58,873		$ (56,120)		$ 2,753		$ 2,102		$ (4,585)		$ (2,483)
Earnings per share net income
Basic				$ 1.57				$ 0.07		$ 0.06				$ (0.07)
Diluted				$ 1.54				$ 0.07		$ 0.06				$ (0.07)
Weighted average shares outstanding
Basic				37,599				37,599		37,203				37,203
Diluted				38,285				38,285		37,747				37,203

ANGIODYNAMICS, INC. AND SUBSIDIARIES
CONSOLIDATED INCOME STATEMENTS
(in thousands, except per share data)
				Twelve months ended							Twelve months ended
				Actual		Pro Forma Adjustments		Pro Forma			Actual		Pro Forma Adjustments		Pro Forma
				May 31,		May 31,		May 31,			May 31,		May 31,		May 31,
				2019		2019		2019			2018		2018		2018
				(unaudited)							(unaudited)
Net sales				$ 359,484		$ (88,850)		$ 270,634			$ 344,285		$ (82,630)		$ 261,655
Cost of sales (exclusive of intangible amortization)				167,612		(52,978)		114,634			167,410		(49,611)		117,799
Gross profit				191,872		(35,872)		156,000			176,875		(33,019)		143,856
% of net sales				53.4%		40.4%		57.6%			51.4%		40.0%		55.0%
Operating expenses
Research and development				29,435		(1,177)		28,258			25,459		(1,121)		24,338
Sales and marketing				80,958		(4,129)		76,829			77,276		(4,167)		73,109
General and administrative				35,173		(271)		34,902			31,265		(274)		30,991
Amortization of intangibles				19,772		(2,716)		17,056			16,635		(2,729)		13,906
Change in fair value of contingent consideration				(6,776)		-		(6,776)			250		-		250
Acquisition, restructuring and other items, net				15,127		-		15,127			15,432		-		15,432
Total operating expenses				173,689		(8,293)		165,396			166,317		(8,291)		158,026
Operating income				18,183		(27,579)		(9,396)			10,558		(24,728)		(14,170)
Interest expense, net				(5,099)		-		(5,099)			(3,062)		-		(3,062)
Other income (expense), net				46,385		(46,592)		(207)			(31)		-		(31)
Total other expense, net				41,286		(46,592)		(5,306)			(3,093)		-		(3,093)
Income before income taxes				59,469		(74,171)		(14,702)			7,465		(24,728)		(17,263)
Income tax expense (benefit)				(1,871)		(1,685)		(3,556)			(8,870)		(2,166)		(11,036)
Net income				$ 61,340		$ (72,486)		$ (11,146)			$ 16,335		$ (22,562)		$ (6,227)
Earnings per share net income
Basic				$ 1.64				$ (0.30)			$ 0.44				$ (0.17)
Diluted				$ 1.61				$ (0.30)			$ 0.44				$ (0.17)
Weighted average shares outstanding
Basic				37,485				37,485			37,075				37,075
Diluted				38,147				37,485			37,539				37,075

ANGIODYNAMICS, INC. AND SUBSIDIARIES
GAAP TO NON-GAAP RECONCILIATION
(in thousands, except per share data)
	Reconciliation of Net Income to non-GAAP Adjusted Net Income:
		Actual				Actual
		Three months ended				Twelve months ended
		May 31,		May 31,		May 31,		May 31,
		2019		2018		2019		2018
		(unaudited)				(unaudited)
	Net income	$ 58,873		$ 2,102		$ 61,340		$ 16,335
	Amortization of intangibles	5,126		4,202		19,772		16,635
	Change in fair value of contingent consideration	(7,641)		32		(6,776)		250
	Acquisition, restructuring and other items, net (1)	5,427		3,500		15,127		15,432
	Gain on divestiture	(46,592)		-		(46,592)		-
	Tax effect of non-GAAP items (2)	(5,602)		(2,162)		(11,301)		(21,051)
	Adjusted net income	$ 9,591		$ 7,674		$ 31,570		$ 27,601
	Reconciliation of Diluted Earnings Per Share to non-GAAP Adjusted Diluted Earnings Per Share:
		Actual				Actual
		Three months ended				Twelve months ended
		May 31,		May 31,		May 31,		May 31,
		2019		2018		2019		2018
		(unaudited)				(unaudited)
	Diluted earnings per share	$ 1.54		$ 0.06		$ 1.61		$ 0.44
	Amortization of intangibles	0.13		0.11		0.52		0.44
	Change in fair value of contingent consideration	(0.20)		0.00		(0.18)		0.01
	Acquisition, restructuring and other items, net (1)	0.14		0.09		0.40		0.41
	Gain on divestiture	(1.21)		-		(1.22)		-
	Tax effect of non-GAAP items (2)	(0.15)		(0.06)		(0.30)		(0.56)
	Adjusted diluted earnings per share	$ 0.25		$ 0.20		$ 0.83		$ 0.74
	Adjusted diluted share count	38,285		37,747		38,147		37,539

(1) Includes costs related to merger and acquisition activities, restructurings, and unusual items, including asset impairments and write-offs, certain litigation, and other items. (2) Adjustment to reflect the income tax provision on a non-GAAP basis has been calculated assuming no valuation allowance on the Company's U.S. deferred tax assets and an effective tax rate of 23% for May 31, 2019. For May 31, 2018, the effective tax rate i) has been calculated using a blended rate of 30.62% for the year ended May 31, 2018 due to the enactment of the Tax Cuts and Jobs Act (the “Act”) that reduced the federal corporate tax rate to 21%; ii) excludes the benefit recorded in Q3 fiscal 2018 resulting from remeasurement of the Company's deferred tax assets from the Act; iii) tax effects the non-GAAP adjustment shown above and iv) assumes the Company does not have a valuation allowance on its U.S deferred tax assets.

ANGIODYNAMICS, INC. AND SUBSIDIARIES
GAAP TO NON-GAAP RECONCILIATION
(in thousands, except per share data)
	Reconciliation of Net Income to non-GAAP Adjusted Net Income:
		Pro Forma				Pro Forma
		Three months ended				Twelve months ended
		May 31,		May 31,		May 31,		May 31,
		2019		2018		2019		2018
		(unaudited)				(unaudited)
	Net income	$ 2,753		$ (2,483)		$ (11,146)		$ (6,227)
	Amortization of intangibles	4,457		3,519		17,056		13,906
	Change in fair value of contingent consideration	(7,641)		32		(6,776)		250
	Acquisition, restructuring and other items, net (1)	5,427		3,500		15,127		15,432
	Tax effect of non-GAAP items (2)	(2,200)		(2,052)		(6,018)		(14,810)
	Adjusted net income	$ 2,796		$ 2,516		$ 8,243		$ 8,551
	Reconciliation of Diluted Earnings Per Share to non-GAAP Adjusted Diluted Earnings Per Share:
		Pro Forma				Pro Forma
		Three months ended				Twelve months ended
		May 31,		May 31,		May 31,		May 31,
		2019		2018		2019		2018
		(unaudited)				(unaudited)
	Diluted earnings per share	$ 0.07		$ (0.07)		$ (0.30)		$ (0.17)
	Amortization of intangibles	0.12		0.09		0.45		0.37
	Change in fair value of contingent consideration	(0.20)		0.00		(0.18)		0.01
	Acquisition, restructuring and other items, net (1)	0.14		0.10		0.40		0.41
	Tax effect of non-GAAP items (2)	(0.06)		(0.05)		(0.15)		(0.39)
	Adjusted diluted earnings per share	$ 0.07		$ 0.07		$ 0.22		$ 0.23
	Adjusted diluted share count	38,285		37,747		38,147		37,539

(1) Includes costs related to merger and acquisition activities, restructurings, and unusual items, including asset impairments and write-offs, certain litigation, and other items. (2) Adjustment to reflect the income tax provision on a non-GAAP basis has been calculated assuming no valuation allowance on the Company's U.S. deferred tax assets and an effective tax rate of 23% for May 31, 2019. For May 31, 2018, the effective tax rate i) has been calculated using a blended rate of 30.62% for the year ended May 31, 2018 due to the enactment of the Tax Cuts and Jobs Act (the “Act”) that reduced the federal corporate tax rate to 21%; ii) excludes the benefit recorded in Q3 fiscal 2018 resulting from remeasurement of the Company's deferred tax assets from the Act; iii) tax effects the non-GAAP adjustment shown above and iv) assumes the Company does not have a valuation allowance on its U.S deferred tax assets.

ANGIODYNAMICS, INC. AND SUBSIDIARIES
GAAP TO NON-GAAP RECONCILIATION (Continued)
(in thousands, except per share data)
	Reconciliation of Net Income to EBITDAS and Adjusted EBITDAS:
				Actual				Actual
				Three months ended				Twelve months ended
				May 31,		May 31,		May 31,		May 31,
				2019		2018		2019		2018
				(unaudited)				(unaudited)
	Net income			$ 58,873		$ 2,102		$ 61,340		$ 16,335
	Income tax expense (benefit)			(2,737)		1,225		(1,871)		(8,870)
	Interest expense, net			1,410		839		5,099		3,062
	Depreciation and amortization			6,722		5,768		25,880		23,163
	Stock-based compensation			2,130		2,091		9,249		7,912
	EBITDAS			$ 66,398		$ 12,025		$ 99,697		$ 41,602
	Change in fair value of contingent consideration			$ (7,641)		$ 32		$ (6,776)		$ 250
	Acquisition, restructuring and other items, net (1) (2)			5,427		3,500		15,127		15,156
	Gain on divestiture			(46,592)		-		(46,592)		-
	Adjusted EBITDAS			$ 17,592		$ 15,557		$ 61,456		$ 57,008
	Per diluted share:
	EBITDAS			$ 1.73		$ 0.32		$ 2.61		$ 1.11
	Adjusted EBITDAS			$ 0.46		$ 0.41		$ 1.61		$ 1.52

(1) Includes costs related to merger and acquisition activities, restructurings, and unusual items, including asset impairments and write-offs, certain litigation, and other items. (2) Excludes depreciation expense captured in the depreciation and amortization component of the reconciliation.

ANGIODYNAMICS, INC. AND SUBSIDIARIES
GAAP TO NON-GAAP RECONCILIATION (Continued)
(in thousands, except per share data)
	Reconciliation of Net Income to EBITDAS and Adjusted EBITDAS:
				Pro Forma				Pro Forma
				Three months ended				Twelve months ended
				May 31,		May 31,		May 31,		May 31,
				2019		2018		2019		2018
				(unaudited)				(unaudited)
	Net income			$ 2,753		$ (2,483)		$(11,146)		$ (6,227)
	Income tax expense (benefit)			(1,365)		(941)		(3,556)		(11,036)
	Interest expense, net			1,410		839		5,099		3,062
	Depreciation and amortization			5,830		4,864		22,598		19,868
	Stock-based compensation			2,123		2,091		9,218		7,912
	EBITDAS			$ 10,751		$ 4,370		$ 22,213		$ 13,579
	Change in fair value of contingent consideration			$ (7,641)		$ 32		$ (6,776)		$ 250
	Acquisition, restructuring and other items, net (1) (2)			5,427		3,500		15,127		15,156
	Adjusted EBITDAS			$ 8,537		$ 7,902		$ 30,564		$ 28,985
	Per diluted share:
	EBITDAS			$ 0.28		$ 0.12		$ 0.58		$ 0.36
	Adjusted EBITDAS			$ 0.22		$ 0.21		$ 0.80		$ 0.77

(1) Includes costs related to merger and acquisition activities, restructurings, and unusual items, including asset impairments and write-offs, certain litigation, and other items. (2) Excludes depreciation expense captured in the depreciation and amortization component of the reconciliation.

ANGIODYNAMICS, INC. AND SUBSIDIARIES
NET SALES BY PRODUCT CATEGORY AND BY GEOGRAPHY
(in thousands)
	Three months ended											Three months ended											Actual									Pro Forma
	Actual			Pro Forma Adjustments				Pro Forma				Actual			Pro Forma Adjustments				Pro Forma							Currency			Constant						Currency			Constant
	May 31,			May 31,				May 31,				May 31,			May 31,				May 31,				%			Impact			Currency			%			Impact			Currency
	2019				2019			2019				2018				2018			2018				Growth			(Pos) Neg			Growth			Growth			(Pos) Neg			Growth
	(unaudited)											(unaudited)
Net Sales by Product Category
Vascular Interventions and Therapies	$	56,206		$	(25,118	)		$	31,088			$	52,583		$	(22,124	)		$	30,459			6.9	%								2.1	%
Vascular Access		24,826			-				24,826				23,669			-				23,669			4.9	%								4.9	%
Oncology		15,268			-				15,268				12,065			-				12,065			26.5	%								26.5	%
Total	$	96,300		$	(25,118	)		$	71,182			$	88,317		$	(22,124	)		$	66,193			9.0	%		1.0	%		9.5	%		7.5	%		0.0	%		8.2	%
Net Sales by Geography
United States	$	73,423		$	(17,643	)		$	55,780			$	70,307		$	(16,211	)		$	54,096			4.4	%		0.0	%		4.4	%		3.1	%		0.0	%		3.1	%
International		22,877			(7,475	)			15,402				18,010			(5,913	)			12,097			27.0	%		2.0	%		29.3	%		27.3	%		4.0	%		30.7	%
Total	$	96,300		$	(25,118	)		$	71,182			$	88,317		$	(22,124	)		$	66,193			9.0	%		1.0	%		9.5	%		7.5	%		0.0	%		8.2	%

ANGIODYNAMICS, INC. AND SUBSIDIARIES
NET SALES BY PRODUCT CATEGORY AND BY GEOGRAPHY
(in thousands)
	Twelve months ended										Twelve months ended										Actual									Pro Forma
	Actual			Pro Forma Adjustments				Pro Forma			Actual			Pro Forma Adjustments				Pro Forma						Currency			Constant						Currency			Constant
	May 31,			May 31,				May 31,			May 31,			May 31,				May 31,			%			Impact			Currency			%			Impact			Currency
	2019			2019				2019			2018			2018				2018			Growth			(Pos) Neg			Growth			Growth			(Pos) Neg			Growth
	(unaudited)										(unaudited)
Net Sales by Product Category
Vascular Interventions and Therapies	$	208,751		$	(88,850	)		$	119,901		$	202,334		$	(82,630	)		$	119,704		3.2	%								0.2	%
Vascular Access		94,730			-				94,730			92,760			-				92,760		2.1	%								2.1	%
Oncology		56,003			-				56,003			49,191			-				49,191		13.8	%								13.8	%
Total	$	359,484		$	(88,850	)		$	270,634		$	344,285		$	(82,630	)		$	261,655		4.4	%		1.0	%		4.7	%		3.4	%		1.0	%		3.8	%
Net Sales by Geography
United States	$	281,303		$	(64,346	)		$	216,957		$	273,327		$	(59,600	)		$	213,727		2.9	%		0.0	%		2.9	%		1.5	%		0.0	%		1.5	%
International		78,181			(24,504	)			53,677			70,958			(23,030	)			47,928		10.2	%		2.0	%		11.6	%		12.0	%		2.0	%		14.2	%
Total	$	359,484		$	(88,850	)		$	270,634		$	344,285		$	(82,630	)		$	261,655		4.4	%		1.0	%		4.7	%		3.4	%		1.0	%		3.8	%

ANGIODYNAMICS, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(in thousands)
		May 31,		May 31,
		2019		2018
		(unaudited)		(audited)
Assets
Current Assets
	Cash and cash equivalents	$ 227,641		$ 74,096
	Marketable securities	-		1,317
	Total cash and investments	227,641		75,413
	Accounts receivable, net	43,577		39,401
	Inventories	40,071		39,274
	Prepaid expenses and other	4,003		4,302
	Current assets held for sale	-		9,642
	Total current assets	315,292		168,032
Property, plant and equipment, net		24,258		25,715
Other assets		3,835		3,417
Intangible assets, net		145,387		112,547
Goodwill		347,666		285,944
Non-current assets held for sale		-		109,817
	Total Assets	$ 836,438		$ 705,472
Liabilities and Stockholders' Equity
Current Liabilities
	Accounts payable	$ 22,829		$ 15,775
	Accrued liabilities	38,338		34,426
	Current portion of long-term debt	7,500		5,000
	Current portion of contingent consideration	4,635		2,100
	Total current liabilities	73,302		57,301
Long-term debt, net of current portion		124,407		86,621
Deferred income taxes		14,542		17,173
Contingent consideration, net of current portion		8,851		1,161
Other long-term liabilities		521		621
	Total Liabilities	221,623		162,877
Stockholders' equity		614,815		542,595
	Total Liabilities and Stockholders' Equity	$ 836,438		$ 705,472

ANGIODYNAMICS, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
	Three months ended				Twelve months ended
	May 31,		May 31,		May 31,		May 31,
	2019		2018		2019		2018
	(unaudited)				(unaudited)		(audited)
Cash flows from operating activities:
Net income	$ 58,873		$ 2,102		$ 61,340		$ 16,335
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	6,722		5,768		25,880		23,163
Stock-based compensation	2,130		2,091		9,249		7,912
Gain on disposition	(46,592)		-		(46,592)		-
Transaction costs for disposition	(4,030)		-		(4,030)		-
Change in fair value of contingent consideration	(7,641)		32		(6,776)		250
Deferred income taxes	(3,288)		1,203		(2,655)		(8,947)
Change in accounts receivable allowance	(103)		214		(202)		179
Fixed and intangible asset impairments and disposals	1,806		510		2,495		540
Other	-		30		(5)		(605)
Changes in operating assets and liabilities:
Accounts receivables	676		2,147		(3,177)		5,044
Inventories	1,274		7,653		(1,428)		5,740
Prepaid expenses and other	(363)		(683)		(1,871)		(1,231)
Accounts payable, accrued and other liabilities	15,548		2,704		5,212		(7,093)
Net cash provided by operating activities	25,012		23,771		37,440		41,287
Cash flows from investing activities:
Additions to property, plant and equipment	(815)		(744)		(3,118)		(2,391)
Proceeds from disposition of discontinued operations	169,242		-		169,242		-
Acquisitions of businesses, net of cash acquired	-		-		(84,920)		-
Acquisition of intangibles	-		-		-		(1,265)
Proceeds from sale of marketable securities	-		-		1,350
Net cash used in investing activities	168,427		(744)		82,554		(3,656)
Cash flows from financing activities:
Proceeds from issuance of and borrowings on long-term debt	-		-		55,000		-
Repayment of long-term debt	(1,250)		(1,250)		(15,000)		(5,000)
Payment of acquisition related contingent consideration	(6,000)		-		(8,100)		(9,500)
Proceeds from exercise of stock options and employee stock purchase plan	8		389		2,031		2,949
Net cash provided by (used in) financing activities	(7,242)		(861)		33,931		(11,551)
Effect of exchange rate changes on cash and cash equivalents	(260)		(362)		(380)		472
Increase (decrease) in cash and cash equivalents	185,937		21,804		153,545		26,552
Cash and cash equivalents at beginning of period	41,704		52,292		74,096		47,544
Cash and cash equivalents at end of period	$ 227,641		$ 74,096		$ 227,641		$ 74,096

ANGIODYNAMICS, INC. AND SUBSIDIARIES
GAAP TO NON-GAAP RECONCILIATION
(in thousands)
	Reconciliation of Free Cash Flows:
		Three months ended				Twelve months ended
		May 31,		May 31,		May 31,		May 31,
		2019		2018		2019		2018
		(unaudited)				(unaudited)
	Net cash provided by operating activities	$ 25,012		$ 23,771		$ 37,440		$ 41,287
	Additions to property, plant and equipment	(815)		(744)		(3,118)		(2,391)
	Free Cash Flow	$ 24,197		$ 23,027		$ 34,322		$ 38,896

 

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