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Published: 2023-07-12 00:00:00 ET
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EX-99.1 2 brhc20055777_ex99-1.htm EXHIBIT 99.1
Exhibit 99.1


PRESS RELEASE
 
Investor Contact:

AngioDynamics, Inc.
Stephen Trowbridge, Executive Vice President & CFO
(518) 795-1408
 
AngioDynamics Reports Fiscal Year 2023 Fourth Quarter and Full-Year Financial Results;
Issues Fiscal Year 2024 Guidance
 
Fiscal Year 2023 Fourth Quarter Highlights
•
Net sales of $91.1 million increased 4.7% compared to the prior-year quarter

o
Med Tech net sales of $26.5 million increased 17.2%

o
Med Device net sales of $64.6 million increased 0.3%
•
Gross margin of 50.9% declined 250 basis points year over year
•
GAAP loss per share of $0.54, inclusive of a goodwill impairment of $14.5 million, or $0.37 per share, in connection with the transaction announced on June 8, 2023
•
Adjusted earnings per share of $0.02
•
Cash and cash equivalents at May 31, 2023 were $44.6 million
•
On June 8, 2023, the Company completed the sale of its Dialysis and BioSentry Tract Sealant System Biopsy businesses to Merit Medical Systems, Inc. for $100 million in cash
•
Subsequent to quarter end, the Company completed enrollment in its PRESERVE study for the treatment of prostate cancer with NanoKnife
 
Full-Year 2023 Highlights

 •
Net sales of $338.8 million increased 7.1% year over year

•
Gross margin declined 100 basis points year over year to 51.4%

•
GAAP loss per share of $1.33, inclusive of a goodwill impairment of $14.5 million, or $0.37 per share, in connection with the transaction announced on June 8, 2023

•
Adjusted loss per share of $0.06

Latham, New York, July 12, 2023 – AngioDynamics, Inc. (NASDAQ: ANGO), a leading and transformative medical technology company focused on restoring healthy blood flow in the body’s vascular system, expanding cancer treatment options and improving quality of life for patients, today announced financial results for the fourth quarter and fiscal year 2023, which ended May 31, 2023.

 “AngioDynamics’ fourth quarter and fiscal year 2023 saw continued growth driven by our team’s commitment to innovation,” commented Jim Clemmer, President and Chief Executive Officer of AngioDynamics, Inc. “Additionally, we recently took another significant step in our transformation by announcing the divestiture of our Dialysis and BioSentry Biopsy businesses, which strengthens our balance sheet and enables an even clearer focus on our high-growth Med Tech platforms. Looking ahead, we will continue to seek opportunities to further focus the portfolio in order to drive growth and margin expansion.”

Mr. Clemmer continued, “We are now two years into the three-year plan that we provided in July of 2021, and we are at or above our overall revenue growth targets, with our Med Tech segment continuing to comprise an increasing portion of our overall business. This bodes well for our future, and I’m excited about the differentiated products and clinical data that we will be bringing to market in fiscal year 2024 and beyond.”

Fourth Quarter 2023 Financial Results

Net sales for the fourth quarter of fiscal year 2023 were $91.1 million, an increase of 4.7% compared to the prior-year quarter. Foreign currency translation did not have a significant impact on the Company's net sales in the quarter.

Med Tech net sales were $26.5 million, a 17.2% increase from $22.6 million in the prior- year period. Med Tech includes the Auryon peripheral atherectomy platform, the thrombus management platform and the NanoKnife irreversible electroporation platform. Growth was driven by Auryon sales during the quarter of $11.8 million, which increased 22.0%, NanoKnife disposable sales of $4.6 million, representing an increase of 28.0% compared to the fourth quarter of fiscal 2022, and AlphaVac sales of $1.8 million, an increase of 86.9% over the prior year.

Med Device net sales were $64.6 million, an increase of 0.3% compared to $64.4 million in the prior-year period.

U.S. net sales in the fourth quarter of fiscal 2023 were $74.4 million, an increase of 1.0% from $73.7 million a year ago. International net sales were $16.6 million, an increase of 25.1%, compared to $13.3 million a year ago.

Gross margin for the fourth quarter of fiscal 2023 was 50.9%, a decrease of 250 basis points compared to the fourth quarter of fiscal 2022, but up sequentially from 50.2% in the third quarter. Gross margin for the Med Tech business was 64.7%, a decrease of 400 basis points from the fourth quarter of fiscal 2022. Gross margin for the Med Device business was 45.2%, a decrease of 280 basis points compared to the fourth quarter of fiscal 2022. Gross margin continued to be impacted by inflationary pressures including increased costs for labor and raw materials.

The Company recorded a net loss of $21.5 million, or a loss per share of $0.54, in the fourth quarter of fiscal 2023. This includes a goodwill impairment of $14.5 million, or $0.37 per share, in connection with the transaction announced on June 8, 2023. This goodwill impairment is described in more detail below. This compares to a net loss of $6.3 million, or a loss per share of $0.16, a year ago.

Excluding the items shown in the non-GAAP reconciliation table below, adjusted net income for the fourth quarter of fiscal 2023 was $0.7 million, and adjusted earnings per share was $0.02, compared to adjusted net income of $0.3 million and adjusted earnings per share of $0.01 in the prior-year period.

Adjusted EBITDA in the fourth quarter of fiscal 2023, excluding the items shown in the reconciliation table below, was $7.9 million, compared to $6.2 million in the fourth quarter of fiscal 2022.

In the fourth quarter of fiscal 2023, the Company generated $16.0 million in operating cash, had capital expenditures of $1.1 million and $0.5 million in Auryon placement and evaluation units.

At May 31, 2023, the Company had $44.6 million in cash and cash equivalents compared to $30.1 million in cash and cash equivalents at February 28, 2023. The Company had $25.0 million outstanding under its revolving credit facility and $25.0 million outstanding under the delayed draw term loan at May 31, 2023, equal to the total amounts outstanding on February 28, 2023. Subsequent to quarter end, the Company used part of the proceeds from the divestiture of its Dialysis and BioSentry Tract Sealant System Biopsy businesses to extinguish its debt.

Full-Year 2023 Financial Results

For the twelve months ended May 31, 2023:

Net sales were $338.8 million, an increase of 7.1%, compared to $316.2 million for the same period a year ago.

Med Tech net sales were $96.7 million, a 22.8% increase from the prior year period. Med Device net sales were $242.1 million, an increase of 1.9% from the prior year period.

Gross margin declined by 100 basis points to 51.4% from 52.4% a year ago as positive impacts from productivity and the growth of the Med Tech business were more than offset by inflationary pressures including increased costs for labor and raw materials.

The Company's net loss from continuing operations was $52.4 million, or a loss per share of $1.33, compared to a net loss of $26.5 million, or a loss per share of $0.68, a year ago. This includes a goodwill impairment of $14.5 million, or $0.37 per share, in connection with the transaction announced on June 8, 2023. This goodwill impairment is described in more detail below.

Excluding the items shown in the non-GAAP reconciliation table below, adjusted net loss was $2.4 million, with adjusted loss per share of $0.06, compared to adjusted net loss of $0.2 million, or adjusted earnings per share of $0.00, a year ago.

Adjusted EBITDA, excluding the items shown in the reconciliation table below, was $22.6 million, compared to $20.9 million for the same period a year ago.

Goodwill Impairment in Connection with Divestiture

The Dialysis and BioSentry Tract Sealant System Biopsy businesses that were divested subsequent to the Company’s fiscal year end, on June 8, 2023, were accounted for as “Held for Sale” as of May 31, 2023.  As a result, the Company recorded a goodwill impairment during the fiscal fourth quarter ended May 31, 2023.  The gain on the sale of these assets will be recorded in the Company’s first fiscal quarter ending August 31, 2023.

Pro Forma 2023 Performance

In addition to actual results, the tables accompanying this press release reflect pro forma results, which exclude the full-year impact of the Dialysis and BioSentry Tract Sealant System Biopsy businesses that were divested on June 8, 2023.

Fiscal Year 2024 Financial Guidance

The Company expects its fiscal year 2024 net sales to be in the range of $328 to $333 million, gross margin to be approximately 50% to 52% and adjusted loss per share in the range of $0.28 to $0.34. For comparison, pro forma revenue, gross margin, and adjusted loss per share for FY23 when excluding the assets divested to Merit Medical were $306.3 million, 50.5%, and $0.43, respectively.

Conference Call

The Company's management will host a conference call today at 8:00 a.m. ET to discuss its fourth quarter and fiscal year 2023 results.

To participate in the conference call, dial 1-877-407-0784 (domestic) or +1- 201-689-8560 (international) and refer to the passcode 13739492.
 
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 12, 2023, until 11:59 p.m. ET on Wednesday, July 19, 2023. To hear this recording, dial 1-844-512-2921 (domestic) or +1-412-317-6671 (international) and enter the passcode 13739492.
 
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 pro forma results, adjusted EBITDA, adjusted net income and adjusted earnings per share. 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 is a leading and transformative medical technology company focused on restoring healthy blood flow in the body’s vascular system, expanding cancer treatment options and improving quality of life for patients.

The Company’s innovative technologies and devices are chosen by talented physicians in fast-growing healthcare markets to treat unmet patient needs. 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," “projects”, "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 materially from AngioDynamics' expectations, expressed or implied. Factors that may affect the actual results achieved by AngioDynamics include, without limitation, the scale and scope of the COVID-19 global pandemic, 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 third 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 (including inflation, labor shortages and supply chain challenges including the cost and availability of raw materials), the results of on-going litigation, challenges with respect to third-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 obtain regulatory clearances or approval of its products, or 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, 2022. 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
    
Twelve Months Ended
  
   
May 31, 2023
    
May 31, 2022
    
May 31, 2023
    
May 31, 2022
  
   
(unaudited)
    
(unaudited)
    
(audited)
  
                         
Net sales
  
$
91,074
    
$
86,998
    
$
338,752
    
$
316,219
  
Cost of sales (exclusive of intangible amortization)
    
44,715
      
40,543
      
164,506
      
150,487
  
Gross profit
    
46,359
      
46,455
      
174,246
      
165,732
  
% of net sales
    
50.9
%
    
53.4
%
    
51.4
%
    
52.4
%
                                 
Operating expenses
                                
Research and development
    
7,860
      
7,866
      
29,883
      
30,739
  
Sales and marketing
    
26,293
      
26,833
      
104,249
      
95,301
  
General and administrative
    
10,228
      
11,103
      
40,003
      
38,451
  
Amortization of intangibles
    
4,406
      
4,853
      
18,790
      
19,458
  
Goodwill impairment
    
14,549
      
—
      
14,549
      
—
  
Change in fair value of contingent consideration
    
236
      
207
      
2,320
      
1,212
  
Acquisition, restructuring and other items, net
    
3,624
      
1,990
      
15,633
      
9,042
  
Total operating expenses
    
67,196
      
52,852
      
225,427
      
194,203
  
Operating loss
    
(20,837
)
    
(6,397
)
    
(51,181
)
    
(28,471
)
Interest expense, net
    
(901
)
    
(185
)
    
(2,702
)
    
(688
)
Other expense, net
    
(127
)
    
(139
)
    
(554
)
    
(790
)
Total other expense, net
    
(1,028
)
    
(324
)
    
(3,256
)
    
(1,478
)
Loss before income tax benefit
    
(21,865
)
    
(6,721
)
    
(54,437
)
    
(29,949
)
Income tax benefit
    
(398
)
    
(455
)
    
(1,995
)
    
(3,402
)
Net loss
  
$
(21,467
)
  
$
(6,266
)
  
$
(52,442
)
  
$
(26,547
)
                                 
Loss per share
                                
Basic
  
$
(0.54
)
  
$
(0.16
)
  
$
(1.33
)
  
$
(0.68
)
Diluted
  
$
(0.54
)
  
$
(0.16
)
  
$
(1.33
)
  
$
(0.68
)
 
                                
Weighted average shares outstanding
                                
Basic
    
39,608
      
39,160
      
39,480
      
39,009
  
Diluted
    
39,608
      
39,160
      
39,480
      
39,009
  
 
ANGIODYNAMICS, INC. AND SUBSIDIARIES
GAAP TO NON-GAAP RECONCILIATION
(in thousands, except per share data)
 
Reconciliation of Net Loss to non-GAAP Adjusted Net Loss Before Goodwill Impairment:
        
                         
   
Three Months Ended
    
Twelve Months Ended
  
   
May 31, 2023
    
May 31, 2022
    
May 31, 2023
    
May 31, 2022
  
   
(unaudited)
    
(unaudited)
  
                         
Net loss
  
$
(21,467
)
  
$
(6,266
)
  
$
(52,442
)
  
$
(26,547
)
Goodwill impairment
    
14,549
      
—
      
14,549
      
—
  
Net loss adjusted for goodwill impairment*
  
$
(6,918
)
  
$
(6,266
)
  
$
(37,893
)
  
$
(26,547
)

Reconciliation of Diluted Loss Per Share to non-GAAP Adjusted Diluted Loss Per Share Before Goodwill Impairment:
  
                         
   
Three Months Ended
    
Twelve Months Ended
  
   
May 31, 2023
    
May 31, 2022
    
May 31, 2023
    
May 31, 2022
  
   
(unaudited)
    
(unaudited)
  
                         
Diluted loss per share
  
$
(0.54
)
  
$
(0.16
)
  
$
(1.33
)
  
$
(0.68
)
Goodwill impairment
    
0.37
      
—
      
0.37
      
—
  
Adjusted diluted loss per share adjusted for goodwill impairment*
  
$
(0.17
)
  
$
(0.16
)
  
$
(0.96
)
  
$
(0.68
)
                                 
Adjusted diluted sharecount
    
39,608
      
39,160
      
39,480
      
39,009
  

*This does not include the Company's customary adjustments included on the next page.

ANGIODYNAMICS, INC. AND SUBSIDIARIES
GAAP TO NON-GAAP RECONCILIATION
(in thousands, except per share data)
 
Reconciliation of Net Loss to non-GAAP Adjusted Net Income (Loss):
              
                         
   
Three Months Ended
    
Twelve Months Ended
  
   
May 31, 2023
    
May 31, 2022
    
May 31, 2023
    
May 31, 2022
  
   
(unaudited)
    
(unaudited)
  
                         
Net loss
  
$
(21,467
)
  
$
(6,266
)
  
$
(52,442
)
  
$
(26,547
)
                                 
Amortization of intangibles
    
4,406
      
4,853
      
18,790
      
19,458
  
Goodwill impairment
    
14,549
      
—
      
14,549
      
—
  
Change in fair value of contingent consideration
    
236
      
207
      
2,320
      
1,212
  
Acquisition, restructuring and other items, net (1)
    
3,624
      
1,990
      
15,633
      
9,042
  
Tax effect of non-GAAP items (2)
    
(617
)
    
(531
)
    
(1,272
)
    
(3,347
)
Adjusted net income (loss)
  
$
731
    
$
253
    
$
(2,422
)
  
$
(182
)

Reconciliation of Diluted Loss Per Share to non-GAAP Adjusted Diluted Earnings (Loss) Per Share:
  
                         
   
Three Months Ended
    
Twelve Months Ended
  
   
May 31, 2023
    
May 31, 2022
    
May 31, 2023
    
May 31, 2022
  
   
(unaudited)
    
(unaudited)
  
                         
Diluted loss per share
  
$
(0.54
)
  
$
(0.16
)
  
$
(1.33
)
  
$
(0.68
)
                                 
Amortization of intangibles
    
0.11
      
0.12
      
0.48
      
0.50
  
Goodwill impairment
    
0.37
      
—
      
0.37
      
—
  
Change in fair value of contingent consideration
    
0.01
      
0.01
      
0.06
      
0.03
  
Acquisition, restructuring and other items, net (1)
    
0.09
      
0.05
      
0.39
      
0.24
  
Tax effect of non-GAAP items (2)
    
(0.02
)
    
(0.01
)
    
(0.03
)
    
(0.09
)
Adjusted diluted earnings (loss) per share
  
$
0.02
    
$
0.01
    
$
(0.06
)
  
$
0.00
  
 
                                
Adjusted diluted sharecount (3)
    
39,916
      
40,250
      
39,480
      
39,009
  

(1)  Includes costs related to merger and acquisition activities, restructuring, 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 the periods ended May 31, 2023 and May 31, 2022.
 
(3) Diluted shares may differ for non-GAAP measures as compared to GAAP due to a GAAP loss.

ANGIODYNAMICS, INC. AND SUBSIDIARIES
GAAP TO NON-GAAP RECONCILIATION (Continued)
(in thousands, except per share data)
 
Reconciliation of Net Loss to Adjusted EBITDA:
                    
                         
   
Three Months Ended
    
Twelve Months Ended
  
   
May 31, 2023
    
May 31, 2022
    
May 31, 2023
    
May 31, 2022
  
   
(unaudited)
    
(unaudited)
  
                         
Net loss
  
$
(21,467
)
  
$
(6,266
)
  
$
(52,442
)
  
$
(26,547
)
                                 
Income tax benefit
    
(398
)
    
(455
)
    
(1,995
)
    
(3,402
)
Interest expense, net
    
901
      
185
      
2,702
      
688
  
Depreciation and amortization
    
7,506
      
7,628
      
30,681
      
29,194
  
Goodwill impairment
    
14,549
      
—
      
14,549
      
—
  
Change in fair value of contingent consideration
    
236
      
207
      
2,320
      
1,212
  
Stock based compensation
    
2,981
      
2,903
      
11,158
      
10,692
  
Acquisition, restructuring and other items, net (1)
    
3,624
      
1,990
      
15,633
      
9,042
  
Adjusted EBITDA
  
$
7,932
    
$
6,192
    
$
22,606
    
$
20,879
  
                                 
Per diluted share:
                                
Adjusted EBITDA
  
$
0.20
    
$
0.15
    
$
0.57
    
$
0.54
  
 
(1)  Includes costs related to merger and acquisition activities, restructuring, and unusual items, including asset impairments and write-offs, certain litigation, and other items.
 
ANGIODYNAMICS, INC. AND SUBSIDIARIES
NET SALES BY PRODUCT CATEGORY AND BY GEOGRAPHY
(in thousands)
 
   
Three Months Ended
    
Twelve Months Ended
  
   
May 31, 2023
    
May 31, 2022
    
%
Growth
    
Currency
Impact
    
Constant
Currency
Growth
    
May 31, 2023
    
May 31, 2022
    
%
Growth
    
Currency
Impact
    
Constant
 Currency
Growth
  
 
   
(unaudited)
                      
(unaudited)
                    
Net Sales
                                            
Med Tech
  
$
26,494
    
$
22,611
      
17.2
%
              
$
96,687
    
$
78,717
      
22.8
%
            
Med Device
    
64,580
      
64,387
      
0.3
%
                
242,065
      
237,502
      
1.9
%
            
   
$
91,074
    
$
86,998
      
4.7
%
    
0.2
%
    
4.9
%
  
$
338,752
    
$
316,219
      
7.1
%
    
0.4
%
    
7.5
%
                                                                                 
Net Sales by Geography
                                                          
United States
  
$
74,439
    
$
73,704
      
1.0
%
                  
$
282,713
    
$
265,963
      
6.3
%
                
International
    
16,635
      
13,294
      
25.1
%
    
1.1
%
    
26.2
%
    
56,039
      
50,256
      
11.5
%
    
2.5
%
    
14.0
%
   
$
91,074
    
$
86,998
      
4.7
%
    
0.2
%
    
4.9
%
  
$
338,752
    
$
316,219
      
7.1
%
    
0.4
%
    
7.5
%
 
GROSS PROFIT BY PRODUCT CATEGORY
(in thousands)

   
Three Months Ended
      
Twelve Months Ended
    
   
May 31, 2023
    
May 31, 2022
    
% Change
      
May 31, 2023
    
May 31, 2022
    
% Change
    
   
(unaudited)
            
(unaudited)
          
Med Tech
  
$
17,150
    
$
15,524
      
10.5
  
%
  
$
61,966
    
$
52,584
      
17.8
%
Gross profit % of sales
    
64.7
%
    
68.7
%
              
64.1
%
    
66.8
%
          
                                                     
Med Device
  
$
29,209
    
$
30,931
      
(5.6
 )
%
  
$
112,280
    
$
113,148
      
(0.8
)
 %
Gross profit % of sales
    
45.2
%
    
48.0
%
              
46.4
%
    
47.6
%
          
                                                     
Total
  
$
46,359
    
$
46,455
      
(0.2
 )
%
  
$
174,246
    
$
165,732
      
5.1
%
Gross profit % of sales
    
50.9
%
    
53.4
%
              
51.4
%
    
52.4
%
          

ANGIODYNAMICS, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(in thousands)
 
   
May 31, 2023
    
May 31, 2022
  
   
(unaudited)
    
(audited)
  
Assets
            
Current assets:
            
Cash and cash equivalents
  
$
44,620
    
$
28,825
  
Accounts receivable, net
    
52,826
      
52,304
  
Inventories
    
55,325
      
51,392
  
Prepaid expenses and other
    
4,617
      
10,824
  
Current assets held for sale
    
6,154
      
—
  
Total current assets
    
163,542
      
143,345
  
Property, plant and equipment, net
    
44,384
      
45,005
  
Other assets
    
10,676
      
10,963
  
Intangible assets, net
    
111,144
      
152,380
  
Goodwill
    
159,238
      
201,058
  
Non-current assets held for sale
    
43,653
      
—
  
Total assets
  
$
532,637
    
$
552,751
  
Liabilities and stockholders' equity
                
Current liabilities:
                
Accounts payable
  
$
40,445
    
$
28,047
  
Accrued liabilities
    
26,617
      
34,842
  
Current portion of contingent consideration
    
14,761
      
8,783
  
Other current liabilities
    
2,002
      
2,652
  
Total current liabilities
    
83,825
      
74,324
  
Long-term debt, net of current portion
    
49,818
      
25,000
  
Deferred income taxes
    
12,813
      
16,037
  
Contingent consideration, net of current portion
    
4,535
      
8,165
  
Other long-term liabilities
    
3,350
      
4,736
  
Total liabilities
    
154,341
      
128,262
  
Stockholders' equity
    
378,296
      
424,489
  
Total Liabilities and Stockholders' Equity
  
$
532,637
    
$
552,751
  
 
ANGIODYNAMICS, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
 
   
Three Months Ended
    
Twelve Months Ended
  
   
May 31, 2023
    
May 31, 2022
    
May 31, 2023
    
May 31, 2022
  
   
(unaudited)
    
(unaudited)
    
(audited)
  
Cash flows from operating activities:
                        
Net loss
  
$
(21,467
)
  
$
(6,266
)
  
$
(52,442
)
  
$
(26,547
)
Adjustments to reconcile net loss to net cash provided by (used in) operating activities:
                                
Depreciation and amortization
    
7,557
      
7,667
      
30,873
      
29,349
  
Non-cash lease expense
    
601
      
617
      
2,484
      
2,439
  
Goodwill impairment
    
14,549
      
—
      
14,549
      
—
  
Stock based compensation
    
2,981
      
2,903
      
11,158
      
10,692
  
Change in fair value of contingent consideration
    
236
      
207
      
2,320
      
1,212
  
Deferred income tax provision
    
(558
)
    
(587
)
    
(2,310
)
    
(3,708
)
Change in accounts receivable allowances
    
135
      
184
      
695
      
118
  
Asset impairments and disposals
    
147
      
146
      
291
      
391
  
Other
    
(197
)
    
(66
)
    
(514
)
    
(93
)
Changes in operating assets and liabilities, net of acquisitions:
                                
Accounts receivable
    
(2,058
)
    
(10,710
)
    
(1,299
)
    
(17,151
)
Inventories
    
4,056
      
(3,384
)
    
(8,198
)
    
(2,796
)
Prepaid expenses and other
    
724
      
2,135
      
332
      
(5,012
)
Accounts payable, accrued and other liabilities
    
9,248
      
15,714
      
2,139
      
3,912
  
Net cash provided by (used in) operating activities
    
15,954
      
8,560
      
78
      
(7,194
)
Cash flows from investing activities:
                                
Additions to property, plant and equipment
    
(1,056
)
    
(1,039
)
    
(3,812
)
    
(4,297
)
Additions to placement and evaluation units
    
(472
)
    
(2,734
)
    
(5,394
)
    
(11,410
)
Acquisition of intangibles
    
—
      
—
      
(540
)
    
—
  
Cash paid in acquisition
    
—
      
—
      
—
      
(3,600
)
Net cash used in investing activities
    
(1,528
)
    
(3,773
)
    
(9,746
)
    
(19,307
)
Cash flows from financing activities:
                                
Proceeds from issuance of long-term debt
    
—
      
—
      
70,000
      
—
  
Repayment of long-term debt
    
—
      
—
      
(45,000
)
    
—
  
Proceeds from borrowings on long-term debt
    
—
      
—
      
—
      
5,000
  
Deferred financing costs on long-term debt
    
—
      
—
      
(751
)
    
—
  
Proceeds from exercise of stock options and employee stock purchase plan
    
—
      
329
      
1,171
      
2,683
  
Net cash provided by financing activities
    
—
      
329
      
25,420
      
7,683
  
Effect of exchange rate changes on cash and cash equivalents
    
83
      
(181
)
    
43
      
(518
)
Increase (decrease) in cash and cash equivalents
    
14,509
      
4,935
      
15,795
      
(19,336
)
Cash and cash equivalents at beginning of period
    
30,111
      
23,890
      
28,825
      
48,161
  
Cash and cash equivalents at end of period
  
$
44,620
    
$
28,825
    
$
44,620
    
$
28,825
  

ANGIODYNAMICS, INC. AND SUBSIDIARIES
PRO FORMA CONSOLIDATED INCOME STATEMENTS
Three Months Ended August 31, 2022
(in thousands, except per share data)
 
   
As Reported (1)
    
Pro Forma
Adjustments
    
Notes
    
As Adjusted
  
   
(unaudited)
    
(unaudited)
          
(unaudited)
  
                         
Net sales
  
$
81,537
    
$
(7,746
)
   (2)
 
$
73,791
  
Cost of sales (exclusive of intangible amortization)
    
39,232
      
(3,108
)
   (2)
   
36,124
  
Gross profit
    
42,305
      
(4,638
)
  

   
37,667
  
% of net sales
    
51.9
%
          

   
51.0
%
                   

       
Operating expenses
                  

       
Research and development
    
8,333
      
(62
)
   (2)
   
8,271
  
Sales and marketing
    
26,543
      
(19
)
   (2)
   
26,524
  
General and administrative
    
10,101
      
(1
)
   (2)
   
10,100
  
Amortization of intangibles
    
4,837
      
(483
)
   (2)
   
4,354
  
Change in fair value of contingent consideration
    
211
      
—
    

   
211
  
Acquisition, restructuring and other items, net
    
5,581
      
(17
)
   (2)
   
5,564
  
Total operating expenses
    
55,606
      
(582
)
  

   
55,024
  
Operating loss
    
(13,301
)
    
(4,056
)
  

   
(17,357
)
Interest expense, net
    
(381
)
    
—
    

   
(381
)
Other expense, net
    
(175
)
    
—
    

   
(175
)
Total other expense, net
    
(556
)
    
—
    

   
(556
)
Loss before income tax benefit
    
(13,857
)
    
(4,056
)
  

   
(17,913
)
Income tax benefit
    
(853
)
    
—
     (3)
   
(853
)
Net loss
  
$
(13,004
)
  
$
(4,056
)
  

 
$
(17,060
)
                               
Loss per share
                              
Basic
  
$
(0.33
)
                
$
(0.43
)
Diluted
  
$
(0.33
)
                
$
(0.43
)
                               
Weighted average shares outstanding
                              
Basic
    
39,302
                    
39,302
  
Diluted
    
39,302
                    
39,302
  
 
(1)  Reflects the Company's historical US GAAP consolidated financial statements, as reported, before pro forma adjustments related to the sale of the Dialysis and BioSentry Biopsy Businesses ("the Business") for the three months ended August 31, 2022.
 
(2)  Reflects the elimination of revenues and expenses representing the historical operating results of the Business.
 
(3)  There are no adjustments for income tax expense or deferred taxes when considering valuation allowances on the Company's deferred taxes.
 
ANGIODYNAMICS, INC. AND SUBSIDIARIES
PRO FORMA GAAP TO NON-GAAP RECONCILIATION
Three Months Ended August 31, 2022
(in thousands, except per share data)
 
Reconciliation of Net Loss to non-GAAP Adjusted Net Loss:
              
                         
   
As Reported (4)
    
Pro Forma
Adjustments
    
Notes
    
As Adjusted
  
   
(unaudited)
    
(unaudited)
          
(unaudited)
  
                         
Net loss
  
$
(13,004
)
  
$
(4,056
)
    
(5)
 
$
(17,060
)
                       
       
Amortization of intangibles
    
4,837
      
(483
)
    
(5)
   
4,354
  
Change in fair value of contingent consideration
    
211
      
—
        
   
211
  
Acquisition, restructuring and other items, net (1)
    
5,581
      
(17
)
    
(5)
   
5,564
  
Tax effect of non-GAAP items (2)
    
(111
)
    
1,048
        
   
937
  
Adjusted net loss
  
$
(2,486
)
  
$
(3,508
)
          
$
(5,994
)

Reconciliation of Diluted Loss Per Share to non-GAAP Adjusted Diluted Loss Per Share:
  
                         
   
As Reported (4)
    
Pro Forma
Adjustments
    
Notes
    
As Adjusted
  
   
(unaudited)
    
(unaudited)
          
(unaudited)
  
                         
Diluted loss per share
  
$
(0.33
)
  
$
(0.11
)
    
(5)
 
$
(0.44
)
                       
       
Amortization of intangibles
    
0.12
      
(0.01
)
    
(5)
   
0.11
  
Change in fair value of contingent consideration
    
0.01
      
—
              
0.01
  
Acquisition, restructuring and other items, net (1)
    
0.14
      
—
              
0.14
  
Tax effect of non-GAAP items (2)
    
—
      
0.03
              
0.03
  
Adjusted diluted loss per share
  
$
(0.06
)
  
$
(0.09
)
          
$
(0.15
)
 
                                
Adjusted diluted sharecount (3)
    
39,302
                      
39,302
  

(1)  Includes costs related to merger and acquisition activities, restructuring, 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 the periods ended August 31, 2022.
 
(3) Diluted shares may differ for non-GAAP measures as compared to GAAP due to a GAAP loss.
 
(4)  Reflects the Company's historical US GAAP consolidated financial statements, as reported, before pro forma adjustments related to the sale of the Business for the three months ended August 31, 2022.
 
(5)  Reflects the elimination of revenues and expenses representing the historical operating results of the Business.
 
ANGIODYNAMICS, INC. AND SUBSIDIARIES
PRO FORMA GAAP TO NON-GAAP RECONCILIATION (Continued)
Three Months Ended August 31, 2022
(in thousands, except per share data)
 
Reconciliation of Net Loss to Adjusted EBITDA:
                    
                         
   
As Reported (2)
    
Pro Forma
Adjustments
    
Notes
    
As Adjusted
  
   
(unaudited)
    
(unaudited)
          
(unaudited)
  
                         
Net loss
  
$
(13,004
)
  
$
(4,056
)
    
(3)
 
$
(17,060
)
                       
       
Income tax benefit
    
(853
)
    
—
        
   
(853
)
Interest expense, net
    
381
      
—
        
   
381
  
Depreciation and amortization
    
7,621
      
(490
)
    
(3)
   
7,131
  
Change in fair value of contingent consideration
    
211
      
—
        
   
211
  
Stock based compensation
    
3,024
      
—
        
   
3,024
  
Acquisition, restructuring and other items, net (1)
    
5,581
      
(17
)
    
(3)
   
5,564
  
Adjusted EBITDA
  
$
2,961
    
$
(4,563
)
          
$
(1,602
)
 
                                
Per diluted share:
                                
Adjusted EBITDA
  
$
0.08
    
$
(0.12
)
          
$
(0.04
)
 
(1)  Includes costs related to merger and acquisition activities, restructuring, and unusual items, including asset impairments and write-offs, certain litigation, and other items.
 
(2)  Reflects the Company's historical US GAAP consolidated financial statements, as reported, before pro forma adjustments related to the sale of the Business for the three months ended August 31, 2022.
 
(3)  Reflects the elimination of revenues and expenses representing the historical operating results of the Business.
 
ANGIODYNAMICS, INC. AND SUBSIDIARIES
PRO FORMA CONSOLIDATED INCOME STATEMENTS
Three Months Ended November 30, 2022
(in thousands, except per share data)
 
   
As Reported (1)
    
Pro Forma
Adjustments
    
Notes
    
As Adjusted
  
   
(unaudited)
    
(unaudited)
          
(unaudited)
  
                         
Net sales
  
$
85,429
    
$
(8,442
)
    
(2)
 
$
76,987
  
Cost of sales (exclusive of intangible amortization)
    
40,351
      
(3,184
)
    
(2)
   
37,167
  
Gross profit
    
45,078
      
(5,258
)
            
39,820
  
% of net sales
    
52.8
%
                    
51.7
%
                                 
Operating expenses
                                
Research and development
    
6,838
      
(66
)
    
(2)
   
6,772
  
Sales and marketing
    
26,007
      
(15
)
    
(2)
   
25,992
  
General and administrative
    
10,835
      
2
      
(2)
   
10,837
  
Amortization of intangibles
    
4,808
      
(483
)
    
(2)
   
4,325
  
Change in fair value of contingent consideration
    
1,646
      
—
        
   
1,646
  
Acquisition, restructuring and other items, net
    
3,059
      
—
        
   
3,059
  
Total operating expenses
    
53,193
      
(562
)
      
   
52,631
  
Operating loss
    
(8,115
)
    
(4,696
)
      
   
(12,811
)
Interest expense, net
    
(684
)
    
—
        
   
(684
)
Other expense, net
    
(252
)
    
—
        
   
(252
)
Total other expense, net
    
(936
)
    
—
        
   
(936
)
Loss before income tax benefit
    
(9,051
)
    
(4,696
)
      
   
(13,747
)
Income tax benefit
    
(565
)
    
—
      
(3)
   
(565
)
Net loss
  
$
(8,486
)
  
$
(4,696
)
          
$
(13,182
)
                                 
Loss per share
                                
Basic
  
$
(0.21
)
                  
$
(0.33
)
Diluted
  
$
(0.21
)
                  
$
(0.33
)
                                 
Weighted average shares outstanding
                                
Basic
    
39,490
                      
39,490
  
Diluted
    
39,490
                      
39,490
  
 
(1)  Reflects the Company's historical US GAAP consolidated financial statements, as reported, before pro forma adjustments related to the sale of the Business for the three months ended November 30, 2022.
 
(2)  Reflects the elimination of revenues and expenses representing the historical operating results of the Business.
 
(3)  There are no adjustments for income tax expense or deferred taxes when considering valuation allowances on the Company's deferred taxes.
 
ANGIODYNAMICS, INC. AND SUBSIDIARIES
PRO FORMA GAAP TO NON-GAAP RECONCILIATION
Three Months Ended November 30, 2022
(in thousands, except per share data)
 
Reconciliation of Net Loss to non-GAAP Adjusted Net Income (Loss):
              
                         
   
As Reported (4)
    
Pro Forma
Adjustments
    
Notes
    
As Adjusted
  
   
(unaudited)
    
(unaudited)
          
(unaudited)
  
                         
Net loss
  
$
(8,486
)
  
$
(4,696
)
    
(5)
 
$
(13,182
)
                       
       
Amortization of intangibles
    
4,808
      
(483
)
    
(5)
   
4,325
  
Change in fair value of contingent consideration
    
1,646
      
—
              
1,646
  
Acquisition, restructuring and other items, net (1)
    
3,059
      
—
              
3,059
  
Tax effect of non-GAAP items (2)
    
(671
)
    
1,191
              
520
  
Adjusted net income (loss)
  
$
356
    
$
(3,988
)
          
$
(3,632
)

Reconciliation of Diluted Loss Per Share to non-GAAP Adjusted Diluted Earnings (Loss) Per Share:
  
                         
   
As Reported (4)
    
Pro Forma
Adjustments
    
Notes
    
As Adjusted
  
   
(unaudited)
    
(unaudited)
          
(unaudited)
  
                         
Diluted loss per share
  
$
(0.21
)
  
$
(0.12
)
    
(5)
 
$
(0.33
)
                       
       
Amortization of intangibles
    
0.12
      
(0.01
)
    
(5)
   
0.11
  
Change in fair value of contingent consideration
    
0.04
      
—
              
0.04
  
Acquisition, restructuring and other items, net (1)
    
0.08
      
—
              
0.08
  
Tax effect of non-GAAP items (2)
    
(0.02
)
    
0.03
              
0.01
  
Adjusted diluted earnings (loss) per share
  
$
0.01
    
$
(0.10
)
          
$
(0.09
)
 
                                
Adjusted diluted sharecount (3)
    
40,059
                      
39,490
  

(1)  Includes costs related to merger and acquisition activities, restructuring, 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 the periods ended November 30, 2022.
 
(3) Diluted shares may differ for non-GAAP measures as compared to GAAP due to a GAAP loss.
 
(4)  Reflects the Company's historical US GAAP consolidated financial statements, as reported, before pro forma adjustments related to the sale of the Business for the three months ended November 30, 2022.
 
(5)  Reflects the elimination of revenues and expenses representing the historical operating results of the Business.

ANGIODYNAMICS, INC. AND SUBSIDIARIES
PRO FORMA GAAP TO NON-GAAP RECONCILIATION (Continued)
Three Months Ended November 30, 2022
(in thousands, except per share data)
 
Reconciliation of Net Loss to Adjusted EBITDA:
                    
                         
   
As Reported (2)
    
Pro Forma
Adjustments
    
Notes
    
As Adjusted
  
   
(unaudited)
    
(unaudited)
          
(unaudited)
  
                         
Net loss
  
$
(8,486
)
  
$
(4,696
)
    
(3)
 
$
(13,182
)
                       
       
Income tax benefit
    
(565
)
    
—
        
   
(565
)
Interest expense, net
    
684
      
—
        
   
684
  
Depreciation and amortization
    
7,767
      
(491
)
    
(3)
   
7,276
  
Change in fair value of contingent consideration
    
1,646
      
—
        
   
1,646
  
Stock based compensation
    
3,350
      
—
              
3,350
  
Acquisition, restructuring and other items, net (1)
    
3,059
      
—
              
3,059
  
Adjusted EBITDA
  
$
7,455
    
$
(5,187
)
          
$
2,268
  
                                 
Per diluted share:
                                
Adjusted EBITDA
  
$
0.19
    
$
(0.13
)
          
$
0.06
  
 
(1)  Includes costs related to merger and acquisition activities, restructuring, and unusual items, including asset impairments and write-offs, certain litigation, and other items.
 
(2)  Reflects the Company's historical US GAAP consolidated financial statements, as reported, before pro forma adjustments related to the sale of the Business for the three months ended November 30, 2022.
 
(3)  Reflects the elimination of revenues and expenses representing the historical operating results of the Business.
 
ANGIODYNAMICS, INC. AND SUBSIDIARIES
PRO FORMA CONSOLIDATED INCOME STATEMENTS
Three Months Ended February 28, 2023
(in thousands, except per share data)
 
   
As Reported (1)
    
Pro Forma
Adjustments
    
Notes
    
As Adjusted
  
   
(unaudited)
    
(unaudited)
          
(unaudited)
  
                         
Net sales
  
$
80,712
    
$
(7,502
)
    
(2)
 
$
73,210
  
Cost of sales (exclusive of intangible amortization)
    
40,208
      
(3,027
)
    
(2)
   
37,181
  
Gross profit
    
40,504
      
(4,475
)
      
   
36,029
  
% of net sales
    
50.2
%
              
   
49.2
%
                       
       
Operating expenses
                      
       
Research and development
    
6,852
      
(39
)
    
(2)
   
6,813
  
Sales and marketing
    
25,406
      
(11
)
    
(2)
   
25,395
  
General and administrative
    
8,839
      
6
      
(2)
   
8,845
  
Amortization of intangibles
    
4,739
      
(484
)
    
(2)
   
4,255
  
Change in fair value of contingent consideration
    
227
      
—
        
   
227
  
Acquisition, restructuring and other items, net
    
3,369
      
—
        
   
3,369
  
Total operating expenses
    
49,432
      
(528
)
      
   
48,904
  
Operating loss
    
(8,928
)
    
(3,947
)
      
   
(12,875
)
Interest expense, net
    
(736
)
    
—
        
   
(736
)
Other income (expense), net
    
—
      
—
        
   
—
  
Total other expense, net
    
(736
)
    
—
        
   
(736
)
Loss before income tax benefit
    
(9,664
)
    
(3,947
)
      
   
(13,611
)
Income tax benefit
    
(179
)
    
—
      
(3)
   
(179
)
Net loss
  
$
(9,485
)
  
$
(3,947
)
      
 
$
(13,432
)
                       
       
Loss per share
                                
Basic
  
$
(0.24
)
                  
$
(0.34
)
Diluted
  
$
(0.24
)
                  
$
(0.34
)
                                 
Weighted average shares outstanding
                                
Basic
    
39,509
                      
39,509
  
Diluted
    
39,509
                      
39,509
  
 
(1)  Reflects the Company's historical US GAAP consolidated financial statements, as reported, before pro forma adjustments related to the sale of the Business for the three months ended February 28, 2023.

(2)  Reflects the elimination of revenues and expenses representing the historical operating results of the Business.
 
(3)  There are no adjustments for income tax expense or deferred taxes when considering valuation allowances on the Company's deferred taxes.

ANGIODYNAMICS, INC. AND SUBSIDIARIES
PRO FORMA GAAP TO NON-GAAP RECONCILIATION
Three Months Ended February 28, 2023
(in thousands, except per share data)
 
Reconciliation of Net Loss to non-GAAP Adjusted Net Loss:
              
                         
   
As Reported (4)
    
Pro Forma
Adjustments
    
Notes
    
As Adjusted
  
   
(unaudited)
    
(unaudited)
          
(unaudited)
  
                         
Net loss
  
$
(9,485
)
  
$
(3,947
)
    
(5)
 
$
(13,432
)
                       
       
Amortization of intangibles
    
4,739
      
(484
)
    
(5)
   
4,255
  
Change in fair value of contingent consideration
    
227
      
—
              
227
  
Acquisition, restructuring and other items, net (1)
    
3,369
      
—
              
3,369
  
Tax effect of non-GAAP items (2)
    
127
      
1,019
              
1,146
  
Adjusted net loss
  
$
(1,023
)
  
$
(3,412
)
          
$
(4,435
)

Reconciliation of Diluted Loss Per Share to non-GAAP Adjusted Diluted Loss Per Share:
  
                         
   
As Reported (4)
    
Pro Forma
 Adjustments
    
Notes
    
As Adjusted
  
   
(unaudited)
    
(unaudited)
          
(unaudited)
  
                         
Diluted loss per share
  
$
(0.24
)
  
$
(0.10
)
    
(5)
 
$
(0.34
)
                       
       
Amortization of intangibles
    
0.12
      
(0.01
)
    
(5)
   
0.11
  
Change in fair value of contingent consideration
    
0.01
      
—
        
   
0.01
  
Acquisition, restructuring and other items, net (1)
    
0.08
      
—
              
0.08
  
Tax effect of non-GAAP items (2)
    
—
      
0.03
              
0.03
  
Adjusted diluted loss per share
  
$
(0.03
)
  
$
(0.08
)
          
$
(0.11
)
 
                                
Adjusted diluted sharecount (3)
    
39,509
                      
39,509
  

(1)  Includes costs related to merger and acquisition activities, restructuring, 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 the periods ended February 28, 2023.
 
(3) Diluted shares may differ for non-GAAP measures as compared to GAAP due to a GAAP loss.
 
(4)  Reflects the Company's historical US GAAP consolidated financial statements, as reported, before pro forma adjustments related to the sale of the Business for the three months ended February 28, 2023.
 
(5)  Reflects the elimination of revenues and expenses representing the historical operating results of the Business.
 
ANGIODYNAMICS, INC. AND SUBSIDIARIES
PRO FORMA GAAP TO NON-GAAP RECONCILIATION (Continued)
Three Months Ended February 28, 2023
(in thousands, except per share data)
 
Reconciliation of Net Loss to Adjusted EBITDA:
                    
                         
   
As Reported (2)
    
Pro Forma
Adjustments
    
Notes
    
As Adjusted
  
   
(unaudited)
    
(unaudited)
          
(unaudited)
  
                         
Net loss
  
$
(9,485
)
  
$
(3,947
)
    
(3)
 
$
(13,432
)
                       
       
Income tax benefit
    
(179
)
    
—
        
   
(179
)
Interest expense, net
    
736
      
—
        
   
736
  
Depreciation and amortization
    
7,787
      
(491
)
    
(3)
   
7,296
  
Change in fair value of contingent consideration
    
227
      
—
        
   
227
  
Stock based compensation
    
1,803
      
—
              
1,803
  
Acquisition, restructuring and other items, net (1)
    
3,369
      
—
              
3,369
  
Adjusted EBITDA
  
$
4,258
    
$
(4,438
)
          
$
(180
)
 
                                
Per diluted share:
                                
Adjusted EBITDA
  
$
0.11
    
$
(0.11
)
          
$
—
  
 
(1)  Includes costs related to merger and acquisition activities, restructuring, and unusual items, including asset impairments and write-offs, certain litigation, and other items.
 
(2)  Reflects the Company's historical US GAAP consolidated financial statements, as reported, before pro forma adjustments related to the sale of the Business for the three months ended February 28, 2023.
 
(3)  Reflects the elimination of revenues and expenses representing the historical operating results of the Business.

ANGIODYNAMICS, INC. AND SUBSIDIARIES
PRO FORMA CONSOLIDATED INCOME STATEMENTS
Three Months Ended May 31, 2023
(in thousands, except per share data)

   
As Reported (1)
    
Pro Forma
Adjustments
    
Notes
    
As Adjusted
  
   
(unaudited)
    
(unaudited)
          
(unaudited)
  
                         
Net sales
  
$
91,074
    
$
(8,755
)
     (2)
 
$
82,319
  
Cost of sales (exclusive of intangible amortization)
    
44,715
      
(3,595
)
     (2)
   
41,120
  
Gross profit
    
46,359
      
(5,160
)
    

   
41,199
  
% of net sales
    
50.9
%
            

   
50.0
%
                     

       
Operating expenses
                    

       
Research and development
    
7,860
      
(159
)
     (2)
   
7,701
  
Sales and marketing
    
26,293
      
(21
)
     (2)
   
26,272
  
General and administrative
    
10,228
      
—
       (2)
   
10,228
  
Amortization of intangibles
    
4,406
      
(483
)
     (2)
   
3,923
  
Goodwill impairment
    
14,549
      
—
      

   
14,549
  
Change in fair value of contingent consideration
    
236
      
—
      

   
236
  
Acquisition, restructuring and other items, net
    
3,624
      
(368
)
     (2)
   
3,256
  
Total operating expenses
    
67,196
      
(1,031
)
    

   
66,165
  
Operating loss
    
(20,837
)
    
(4,129
)
    

   
(24,966
)
Interest expense, net
    
(901
)
    
—
      

   
(901
)
Other expense, net
    
(127
)
    
—
      

   
(127
)
Total other expense, net
    
(1,028
)
    
—
      

   
(1,028
)
Loss before income tax benefit
    
(21,865
)
    
(4,129
)
    

   
(25,994
)
Income tax benefit
    
(398
)
    
—
       (3)
   
(398
)
Net loss
  
$
(21,467
)
  
$
(4,129
)
    

 
$
(25,596
)
                                 
Loss per share
                                
Basic
  
$
(0.54
)
                  
$
(0.65
)
Diluted
  
$
(0.54
)
                  
$
(0.65
)
                                 
Weighted average shares outstanding
                                
Basic
    
39,608
                      
39,608
  
Diluted
    
39,608
                      
39,608
  

(1)  Reflects the Company's historical US GAAP consolidated financial statements, as reported, before pro forma adjustments related to the sale of the Business for the three months ended May 31, 2023.
 
(2)  Reflects the elimination of revenues and expenses representing the historical operating results of the Business.
 
(3)  There are no adjustments for income tax expense or deferred taxes when considering valuation allowances on the Company's deferred taxes.
 
ANGIODYNAMICS, INC. AND SUBSIDIARIES
PRO FORMA GAAP TO NON-GAAP RECONCILIATION
Three Months Ended May 31, 2023
(in thousands, except per share data)
 
Reconciliation of Net Loss to non-GAAP Adjusted Net Income (Loss):
              
                         
   
As Reported (4)
    
Pro Forma
Adjustments
    
Notes
    
As Adjusted
  
   
(unaudited)
    
(unaudited)
          
(unaudited)
  
                         
Net loss
  
$
(21,467
)
  
$
(4,129
)
    
(5)
 
$
(25,596
)
                       
       
Amortization of intangibles
    
4,406
      
(483
)
    
(5)
   
3,923
  
Goodwill impairment
    
14,549
      
—
        
   
14,549
  
Change in fair value of contingent consideration
    
236
      
—
        
   
236
  
Acquisition, restructuring and other items, net (1)
    
3,624
      
(368
)
    
(5)
   
3,256
  
Tax effect of non-GAAP items (2)
    
(617
)
    
1,146
              
529
  
Adjusted net income (loss)
  
$
731
    
$
(3,834
)
          
$
(3,103
)

Reconciliation of Diluted Loss Per Share to non-GAAP Adjusted Diluted Earnings (Loss) Per Share:
  
                         
   
As Reported (4)
    
Pro Forma Adjustments
    
Notes
    
As Adjusted
  
   
(unaudited)
    
(unaudited)
          
(unaudited)
  
                         
Diluted loss per share
  
$
(0.54
)
  
$
(0.11
)
     (5)
 
$
(0.65
)
                     

       
Amortization of intangibles
    
0.11
      
(0.01
)
     (5)
   
0.10
  
Goodwill impairment
    
0.37
      
—
      

   
0.37
  
Change in fair value of contingent consideration
    
0.01
      
—
      

   
0.01
  
Acquisition, restructuring and other items, net (1)
    
0.09
      
(0.01
)
     (5)
   
0.08
  
Tax effect of non-GAAP items (2)
    
(0.02
)
    
0.03
      

   
0.01
  
Adjusted diluted earnings (loss) per share
  
$
0.02
    
$
(0.10
)
          
$
(0.08
)
 
                                
Adjusted diluted sharecount (3)
    
39,916
                      
39,608
  

(1)  Includes costs related to merger and acquisition activities, restructuring, 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 the periods ended May 31, 2023.
 
(3) Diluted shares may differ for non-GAAP measures as compared to GAAP due to a GAAP loss.
 
(4)  Reflects the Company's historical US GAAP consolidated financial statements, as reported, before pro forma adjustments related to the sale of the Business for the three months ended May 31, 2023.
 
(5)  Reflects the elimination of revenues and expenses representing the historical operating results of the Business.
 
ANGIODYNAMICS, INC. AND SUBSIDIARIES
PRO FORMA GAAP TO NON-GAAP RECONCILIATION (Continued)
Three Months Ended May 31, 2023
(in thousands, except per share data)
 
Reconciliation of Net Loss to Adjusted EBITDA:
                    
                         
   
As Reported (2)
    
Pro Forma
Adjustments
    
Notes
    
As Adjusted
  
   
(unaudited)
    
(unaudited)
          
(unaudited)
  
                         
Net loss
  
$
(21,467
)
  
$
(4,129
)
     (3)
 
$
(25,596
)
                     

       
Income tax benefit
    
(398
)
    
—
      

   
(398
)
Interest expense, net
    
901
      
—
      

   
901
  
Depreciation and amortization
    
7,506
      
(490
)
     (3)
   
7,016
  
Goodwill impairment
    
14,549
      
—
      

   
14,549
  
Change in fair value of contingent consideration
    
236
      
—
      

   
236
  
Stock based compensation
    
2,981
      
—
      

   
2,981
  
Acquisition, restructuring and other items, net (1)
    
3,624
      
(368
)
     (3)
   
3,256
  
Adjusted EBITDA
  
$
7,932
    
$
(4,987
)
          
$
2,945
  
                                 
Per diluted share:
                                
Adjusted EBITDA
  
$
0.20
    
$
(0.13
)
          
$
0.07
  
 
(1)  Includes costs related to merger and acquisition activities, restructuring, and unusual items, including asset impairments and write-offs, certain litigation, and other items.
 
(2)  Reflects the Company's historical US GAAP consolidated financial statements, as reported, before pro forma adjustments related to the sale of the Business for the three months ended May 31, 2023.
 
(3)  Reflects the elimination of revenues and expenses representing the historical operating results of the Business.
 
ANGIODYNAMICS, INC. AND SUBSIDIARIES
PRO FORMA CONSOLIDATED INCOME STATEMENTS
As of May 31, 2023
(in thousands, except per share data)
 
   
As Reported (1)
    
Pro Forma
Adjustments
    
Notes
    
As Adjusted
  
   
(unaudited)
    
(unaudited)
          
(unaudited)
  
                         
Net sales
  
$
338,752
    
$
(32,445
)
     (2)
 
$
306,307
  
Cost of sales (exclusive of intangible amortization)
    
164,506
      
(12,914
)
     (2)
   
151,592
  
Gross profit
    
174,246
      
(19,531
)
    

   
154,715
  
% of net sales
    
51.4
%
            

   
50.5
%
 
                    

       
Operating expenses
                    

       
Research and development
    
29,883
      
(326
)
     (2)
   
29,557
  
Sales and marketing
    
104,249
      
(66
)
     (2)
   
104,183
  
General and administrative
    
40,003
      
7
       (2)
   
40,010
  
Amortization of intangibles
    
18,790
      
(1,933
)
     (2)
   
16,857
  
Goodwill impairment
    
14,549
      
—
      

   
14,549
  
Change in fair value of contingent consideration
    
2,320
      
—
      

   
2,320
  
Acquisition, restructuring and other items, net
    
15,633
      
(386
)
     (2)
   
15,247
  
Total operating expenses
    
225,427
      
(2,704
)
    

   
222,723
  
Operating loss
    
(51,181
)
    
(16,827
)
    

   
(68,008
)
Interest expense, net
    
(2,702
)
    
—
      

   
(2,702
)
Other expense, net
    
(554
)
    
—
      

   
(554
)
Total other expense, net
    
(3,256
)
    
—
      

   
(3,256
)
Loss before income tax benefit
    
(54,437
)
    
(16,827
)
     (3)
   
(71,264
)
Income tax benefit
    
(1,995
)
    
—
              
(1,995
)
Net loss
  
$
(52,442
)
  
$
(16,827
)
          
$
(69,269
)
                                 
Loss per share
                                
Basic
  
$
(1.33
)
                  
$
(1.75
)
Diluted
  
$
(1.33
)
                  
$
(1.75
)
                                 
Weighted average shares outstanding
                                
Basic
    
39,480
                      
39,480
  
Diluted
    
39,480
                      
39,480
  
 
(1)  Reflects the Company's historical US GAAP consolidated financial statements, as reported, before pro forma adjustments related to the sale of the Business for the year ended May 31, 2023.
 
(2)  Reflects the elimination of revenues and expenses representing the historical operating results of the Business.
 
(3)  There are no adjustments for income tax expense or deferred taxes when considering valuation allowances on the Company's deferred taxes.
 
ANGIODYNAMICS, INC. AND SUBSIDIARIES
PRO FORMA GAAP TO NON-GAAP RECONCILIATION
As of May 31, 2023
(in thousands, except per share data)
 
Reconciliation of Net Loss to non-GAAP Adjusted Net Loss:
              
                         
   
As Reported (4)
    
Pro Forma Adjustments
    
Notes
    
As Adjusted
  
   
(unaudited)
    
(unaudited)
          
(unaudited)
  
                         
Net loss
  
$
(52,442
)
  
$
(16,827
)
    
(5)
 
$
(69,269
)
                       
       
Amortization of intangibles
    
18,790
      
(1,933
)
    
(5)
   
16,857
  
Goodwill impairment
    
14,549
      
—
        
   
14,549
  
Change in fair value of contingent consideration
    
2,320
      
—
        
   
2,320
  
Acquisition, restructuring and other items, net (1)
    
15,633
      
(386
)
    
(5)
   
15,247
  
Tax effect of non-GAAP items (2)
    
(1,272
)
    
4,404
        
   
3,132
  
Adjusted net loss
  
$
(2,422
)
  
$
(14,742
)
          
$
(17,164
)

Reconciliation of Diluted Loss Per Share to non-GAAP Adjusted Diluted Loss Per Share:
  
                         
   
As Reported (4)
    
Pro Forma
 Adjustments
    
Notes
    
As Adjusted
  
   
(unaudited)
    
(unaudited)
          
(unaudited)
  
                         
Diluted loss per share
  
$
(1.33
)
  
$
(0.42
)
    
(5)
 
$
(1.75
)
                       
       
Amortization of intangibles
    
0.48
      
(0.05
)
    
(5)
   
0.43
  
Goodwill impairment
    
0.37
      
—
        
   
0.37
  
Change in fair value of contingent consideration
    
0.06
      
—
        
   
0.06
  
Acquisition, restructuring and other items, net (1)
    
0.39
      
(0.01
)
    
(5)
   
0.38
  
Tax effect of non-GAAP items (2)
    
(0.03
)
    
0.11
        
   
0.08
  
Adjusted diluted loss per share
  
$
(0.06
)
  
$
(0.37
)
          
$
(0.43
)
 
                                
Adjusted diluted sharecount (3)
    
39,480
                      
39,480
  

(1)  Includes costs related to merger and acquisition activities, restructuring, 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 the periods ended May 31, 2023.
 
(3) Diluted shares may differ for non-GAAP measures as compared to GAAP due to a GAAP loss.
 
(4)  Reflects the Company's historical US GAAP consolidated financial statements, as reported, before pro forma adjustments related to the sale of the Business for the year ended May 31, 2023.
 
(5)  Reflects the elimination of revenues and expenses representing the historical operating results of the Business.
 
ANGIODYNAMICS, INC. AND SUBSIDIARIES
PRO FORMA GAAP TO NON-GAAP RECONCILIATION (Continued)
As of May 31, 2023
(in thousands, except per share data)
 
Reconciliation of Net Loss to Adjusted EBITDA:
                    
                         
   
As Reported (2)
    
Pro Forma
Adjustments
    
Notes
    
As Adjusted
  
   
(unaudited)
    
(unaudited)
          
(unaudited)
  
                         
Net loss
  
$
(52,442
)
  
$
(16,827
)
     (3)
 
$
(69,269
)
                     

       
Income tax benefit
    
(1,995
)
    
—
      

   
(1,995
)
Interest expense, net
    
2,702
      
—
      

   
2,702
  
Depreciation and amortization
    
30,681
      
(1,962
)
     (3)
   
28,719
  
Goodwill impairment
    
14,549
      
—
      

   
14,549
  
Change in fair value of contingent consideration
    
2,320
      
—
      

   
2,320
  
Stock based compensation
    
11,158
      
—
      

   
11,158
  
Acquisition, restructuring and other items, net (1)
    
15,633
      
(386
)
     (3)
   
15,247
  
Adjusted EBITDA
  
$
22,606
    
$
(19,175
)
          
$
3,431
  
                                 
Per diluted share:
                                
Adjusted EBITDA
  
$
0.57
    
$
(0.49
)
          
$
0.09
  
 
(1)  Includes costs related to merger and acquisition activities, restructuring, and unusual items, including asset impairments and write-offs, certain litigation, and other items.
 
(2)  Reflects the Company's historical US GAAP consolidated financial statements, as reported, before pro forma adjustments related to the sale of the Business for the year ended May 31, 2023.
 
(3)  Reflects the elimination of revenues and expenses representing the historical operating results of the Business.