) reported fourth-quarter fiscal 2012 (ended May 31) adjusted
earnings of 10 cents per share (flat year over year) beating the
Zacks Consensus Estimate of 9 cents per share. Adjusted earnings
exclude one-time expenses such as product recalls, the Quality Call
to Action program expenses, acquisition and restructuring
Results include the Navilyst Medical acquisition, which was
completed on May 22, 2012. In the fourth-quarter fiscal 2012, the
company reported a loss of $7.03 million (or 27 cents a share)
compared with a loss of $0.86 million (or 3 cents a share) in the
year-ago quarter. The loss was mainly driven by higher operating
costs associated with the Navilyst acquisition and
For fiscal 2012, AngioDynamic's adjusted earnings of 43 cents
per share beat the Zacks Consensus Estimate of 40 cents but trailed
the year-ago earnings per share of 46 cents. AngioDynamics reported
a net loss of $5.1 million (or 20 cents per share) in fiscal 2012
versus net income of $8.1 million (or 32 cents per share) in fiscal
Revenues for the fourth quarter increased 2.6% year over year to
$57.7 million, beating the Zacks Consensus Estimate of $52 million.
Navilyst Medical added $4.8 million to total sales.
On a geographic basis, revenues in the U.S. dropped 1.6% year
over year to $47.6 million. However, international sales climbed
28.4% (or 31% on a constant currency basis) to $10.1 million,
mainly driven by the Navilyst acquisition and new product
For the fiscal, revenues increased 2.8% to $221.8 million from
the year-ago period. Fiscal revenues also exceeded the Zacks
Consensus Estimate of $216 million.
Revenues from the core Vascular segment (80.2% of total revenue)
soared 22.6% to $46.3 million. Within Vascular, sales from the
Peripheral Vascular sub-segment also jumped 26.2% to $28.3 million
and sales from the Access sub-segment increased 8.5% to $18
Revenues from the Oncology/Surgery division (19.8% of total
revenue) dropped 38.3% year over year to $11.4 million due to the
loss of LC Beads. NanoKnife product sales increased 54% to 4.1
million despite a temporary halt in shipments in the U.S. For the
fiscal, NanoKnife sales surged 59% to $11.6 million. As of May 31,
2012, roughly 1300 patients have already been treated with the
As per the company, revenues from VenaCure EVLT laser vein
therapy system grew 17% in the quarter and 14% in the fiscal on the
back of higher sales of recently launched VenaCure 1470 nanometer
(nm) laser for treating varicose veins (abnormally swollen veins)
and the NeverTouch procedure kits.
In the fourth quarter of fiscal 2012, on a reported basis, gross
margin fell to 54% from 57.7% in the year-ago period, on account of
product recall charges and expenses for its quality efforts. Sales
and marketing along with general and administrative expenses (as a
percentage of sales) increased to 37.3% from 35.7% in the year-ago
Research and development expenses (as a percentage of sales)
edged down to 9.1% from 9.9%. Adjusted operating income in the
quarter was $4.3 million, roughly flat year-over-year.
Balance Sheet and Other
AngioDynamics ended the quarter with cash and cash equivalents
of $23.5 million, down 48.9% year over year. Total long-term debt
was $150 million, 23 times higher than the year-ago quarter due to
the Navilyst acquisition.
AngioDynamics forecasts revenues (both on reported and adjusted
basis) in the band of $360 million and $363 million for fiscal
2013, way ahead of the Zacks Consensus Estimate of $329 million.
Sales growth is expected to be 5% both on reported and adjusted
Earnings per share (on a reported basis) for fiscal 2013 are
expected in the band of 21 cents - 23 cents. Adjusted earnings per
share are projected in the range of 49cents - 51 cents. The
guidance is almost in line compared with the Zacks Consensus
Estimate adjusted earnings of 48 cents for the fiscal year.
Gross margin is forecast in the range of 52% to 53% for fiscal
2013. Adjusted operating income is expected to be $34 million to
$36 million. Earnings before interest, taxes, depreciation and
amortization (EBITDA), on an adjusted basis, has been forecast in
the range of $60 million to $61 million.
In the reported quarter, AngioDynamics provided details on its
strategic relation with Microsulis Medical Ltd. The agreement
includes an investment of $5 million for a 14.3% ownership right;
total distribution rights to sell the Accu2i pMTA device outside
the U.S. until December 2013 and an exclusive agreement to buy all
the global assets of Microsulis at any time till September
AngioDynamics entered into a three-year agreement with Canadian
HealthPRO, which represents the purchasing interest of provincial
authorities, 225 hospitals and Shared Service Organizations. The
company also launched the Embarc Microcatheter and the Charter
Guidewire in the quarter to boost its Oncology/Surgery
However, AngioDynamics' product lines face strong challenges
from the competitive offerings of its larger rivals such as
). We are currently Neutral on AngioDynamics, which carries a
short-term Zacks #3 Rank (Hold).
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