Q2 2013 Earnings Call
January 03, 2013 4:30 pm ET
Joseph M. DeVivo - Chief Executive Officer, President and Director
Jayson T. Bedford - Raymond James & Associates, Inc., Research Division
Brooks E. West - Piper Jaffray Companies, Research Division
Matthew Hewitt - Craig-Hallum Capital Group LLC, Research Division
Larry Haimovitch - Haimovitch Medical Technology Consultants
Previous Statements by ANGO
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I would now like to turn the conference over to Bob Jones of EVC Group. Please go ahead.
Thank you, Alicia, and thank you for joining us for the AngioDynamics conference call this afternoon to review the financial results for the fiscal 2013 second quarter which ended on November 30, 2012.
The news release announcing the results was issued this afternoon after the market's close is available on AngioDynamics website at angiodynamics.com. A replay of this call will be archived on the company's website.
Before we get started, during the course of this conference call, the company will make projections and forward-looking statements regarding future events, including statements about revenue and earnings for fiscal 2013. We encourage you to review the company's past and future filings with the SEC, including, without limitation, the company's forms 10-Q and 10-K, which identify specific factors that may cause actual results or events to differ materially from those described in the forward-looking statements.
Finally, during the question-and-answer period today, we'd like to request each caller to limit themselves to 2 questions and encourage callers to requeue to ask additional questions. We appreciate everyone's cooperation with this procedure.
And with that, I'd like to turn the call over to Joe DeVivo, Chief Executive Officer.
Joseph M. DeVivo
Thank you very much, Bob. So good afternoon, everyone. Happy new year. It will be a great year for AngioDynamics.
I'd like to welcome you to our second quarter fiscal year 2013 conference call. With me is Mark Frost, our incoming Chief Financial Officer, so let's all welcome Mark.
The second quarter was an encouraging quarter for AngioDynamics. Around the company, we began to see signs our new organization is starting to deliver, whether it was our new sales force starting to play some offense in beginning new account evaluations after a good 4 months of transition and relearning; or our operations teams finding more and more cost to drive out; our marketing teams getting used to the benefits of our combined product offerings; our quality teams accelerating our QMS implementation; or our finance teams beginning to drive cash performance.
All in all, it was a consistent quarter of improvement. Our research and development teams brought to life some new growth opportunities, one which we will unveil at our upcoming Analyst Day in January.
What's more important is we begin to see signs of what type of company we will be able to become. We generated overall 3% top line growth worldwide, to $87 million, and on guidance. We delivered an adjusted EBITDA of almost $14 million or $0.39 per share and generated $11 million in cash, resulting in an adjusted EPS of $0.10 per share ahead of expectations. Overall, our company performed well.
Of course, the first half of our year has not been without challenges. We initially attributed a very slow start to our fiscal year to our organizational changes, of course, in our U.S. sales force. While that remains the main contributor, with our peer companies also are now reporting soft sales in the U.S. for the periods June through September, we realized we were not alone in seeing the softness in the U.S. market. Weakness in interventional cardiology procedure volumes were also noted for many companies.
Now we were also adversely affected by Hurricane Sandy, which we estimate cost us about $500,000 to $700,000 of U.S. revenues for the second quarter. While we originally planned being a bit ahead of where we are today, all in all, our teams delivered a respectable top line, bottom line and cash performance in the first half of 2013 fiscal.
Where the U.S. was weak, international continued its double-digit growth. Delivering another 20% plus performance for the 10th consecutive quarter, our channel development is increasingly contributing to our overall top line growth. I am extremely pleased and proud of our international team here at AngioDynamics.
Globally, our EVLT business also delivered double-digit growth as we saw the business in Europe stabilize while it also began to reaccelerate in the U.S. after a slow first quarter.
What is also notable is the progress we made with our GPO and IDN strategy. Our team is engaged with a number of hospital groups today, looking for new vendor relationships as an alternative to their incumbent. What we've noticed is our consolidated Vascular Access portfolio, as well as our Fluid Management business, makes AngioDynamics a more viable and quite frankly sizable partner. These relationships take time to develop of course and will contribute to the top line, but it will take time. That said, we are at the table more than we ever were, and I believe account conversions and corporate agreements will be a growth driver in the future.
Our Oncology business also continues its quarterly double-digit growth contributions in the face of more and more challenging comparables.