Angiodynamics, Inc. · NASDAQ:ANGO
Angiodynamics — Q1 FY2016 Earnings Presentation
24 slides from Angiodynamics's earnings presentation, Oct 15, 2015
Slide 1: Q1 FY2016 Financial Results Presentation
Q1 FY2016 Financial Results PresentationOctober 14, 2015
Slide 2: Forward-Looking Statements
Forward-Looking Statements Notice Regarding Forward Looking StatementsThis presentation 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, c
Slide 3: Profile of AngioDynamics
Profile of AngioDynamics Global, leading provider of innovative, image guided, minimally invasive solutions. Company Profile * Franchises:Peripheral VascularVascular AccessOncology/Surgery Founded: 1998IPO: May 2004ANGO (NASDAQ) Employee Base:1,300 employees7 operating locations Global Footprint:210
Slide 4: Performance Update
Performance Update * Adjusted results exclude costs relating to acquisitions, debt financing, business restructuring, litigation, facility consolidations, amortization of basis step-up of acquired inventory, revaluation of contingent earn outs related to acquisitions, recalls, product discontinuatio
Slide 5: Leadership
Leadership Joseph M. DeVivoPresident & CEO Mark FrostEVP & CFO John SotoEVP & CCO Stephen TrowbridgeSVP & General Counsel Barbara KucharczykSVP, Operations Mark StephensSVP, Administration Gary BarrettSVP, RA/QA * Benjamin DavisSVP, Business Development
Slide 6: AngioDynamics in FY15
* Ports PICCs Other Access Core PV Fluid Mgmt Venous AngioDynamics in FY15 AngioVac FY15 1% Sales Growth; 51% GM Sales by FranchisePeripheral Vascular: $193MVascular Access: $108MOncology/Surgery: $52MTotal: $353M* Sales Growth High Low StdGrossMargin Harvest Fix/Divest Invest Scale * Excludes BCS s
Slide 7: Operational Improvements Plan and Impact
Implement near term product family consolidation / elimination opportunitiesTarget indirect procurement supplier consolidation and processesCompress Queensbury shift structure through deployment of Operational Excellence and CapexRe-align manufacturing organizational leadership Site consolidation:Qu
Slide 8: Strong Product Development Pipeline
* FY16 FY16 FY16 FY16 FY16 FY16 FY16 FY17 FY17 FY17 FY18 FY18 FY18 Strong Product Development Pipeline* *Timelines are estimated and subject to change. FY16 FY17
Slide 9: Clinical Studies and AngioDynamics in FY20
* FY18 FY16 Clinical Studies* O/SLEIDEN – NanoKnife Pancreas CROES Prostate Registry CROES II Prostate Randomized Clinical TrialNEAT – NanoKnife Prostate AHPBA Pancreas and Liver Registry Investigator Initiated Trials PVRAPID AngioVac Registry VAPROBES Port Clinical TrialPICC Retrospective Clinical
Slide 10: Peripheral Vascular Franchise
Peripheral Vascular Franchise Qi YoY_'| FY15 YoY $1.6B Sin millions | Market FY16 Growth | Growth Fluid Mgmt. $19 9% | 1% Venous $12 4% | 4% 12% Share Thrombus Mgmt. $4 14% i 5% _ Other Core Products $12 4% | 0% J Total pv $47 0% =| 0% Recent Events: + Next generation AngioVac launched * UCLA initia
Slide 11: Thrombus Management Market Summary
Source:Heit JA, et al. Blood. 2005;106:267A.Murphy SL, et al. Deaths: Preliminary Data for 2010. National Vital Statistics Reports; 2012 Thrombus Management Market Summary Additional:Annual Incidence Catheter/Lead RA200,000 RA Mass47,000 IVCF Thrombosis14,000 TV Endocarditis2,500 Surgical Embolectom
Slide 12: Solution: AngioVac
Solution: AngioVac Scalable platform for next generation devices Attractive pricing & higher margins FDA Newly cleared expanded & CE Mark us. approved indication Everyone remembers first time AngioVac ® angiodynamics &) angiodynamics
Slide 13: Vascular Access Franchise
Vascular Access Franchise * $1.0B Market 11% Share $ in millions Q1 FY16 YoY Growth FY15 YoY Growth PICCs $11 -14% -6% Ports $8 -2% 7% Dialysis 5 9% 8% Total VA $25 -7% 1% Recent Events:510(k) clearance of BioFlo Midline catheterBioFlo DuraMax chronic hemodialysis catheter CE MarkAwarded two contrac
Slide 14: BioFlo Technology
BioFlo Technology The BioFlo family of products, including PICCs, ports and dialysis catheters, are the only vascular access products manufactured with Endexo Technology, a permanent and non-eluting integral polymer. BioFlo DuraMax at 10% magnification Catheter has minimal visible Less Thrombus Accu
Slide 15: Reducing Healthcare Costs
Reducing Healthcare Costs Facility 1 1,251 BioFlo PICCs placed85% reduction in symptomatic UEDVT 7 UEDVTs reported from 1251 PICCsUEDVT rate of .45% versus prior 3.1% Facility 2272 BioFlo PICCs placed42% reduction in Occlusions19.7% reduction in baseline occlusion rate Facility 3776 BioFlo PICCs pla
Slide 16: Celerity Tip Location
Celerity Tip Location Tip location, coupled with our innovative BioFlo Technology, will improve our competitive position in the PICC market. WV Fall 2013: Canadian Launch Ease of use * Use with existing ultrasound Wi March 6, 2014: Acquired regulatory control over Celerity platform and rights Clinic
Slide 17: Leveraging BioFlo to Win Contracted Business
Leveraging BioFlo to Win Contracted Business The Market ̴30% of ANGO Sales are Contracted AngioDynamics 2 0 1 2 2 0 1 3 2 0 1 4 2 0 1 5 Novation Awards ANGO New Technology Award for BioFlo PICCs8/1/2014 Premier Awards ANGO PICC Contract 7/1/2013 HealthTrust Awards ANGO PICC Contract 1/1/20158/1/2014
Slide 18: Oncology/Surgery Franchise
Oncology/Surgery Franchise * $225M Market 22% Share $ in millions Q1 FY16 YoY Growth FY15 YoY Growth Thermal Ablation $7 5% -3% NanoKnife $3 -20% 25% Resection/Other $1 -33% 4% Total O/S $11 -9% 6% Recent Events:Dr. Robert Martin, Director of Surgical Oncology, published pancreatic cancer study in t
Slide 19: Expanding Leadership in Tissue Ablation
Expanding Leadership in Tissue Ablation THERMAL NON-THERMAL AngioDynamics offers a full complement of tissue ablation products that provide clinicians maximum choice in treating patients. *
Slide 20: Re-Entering the Embolization Market
Re-Entering the Embolization Market On April 9, 2015, AngioDynamics entered an agreement with EmboMedics Inc., which develops injectable and resorbable microspheres, and expects to file for U.S. FDA 510(k) clearance for the embolization of hypervascular tumors by January 2016. Novel Technology
Slide 21: International Growth Strategy
International Growth Strategy Market led, efficient and aligned Region-based business model improves competitivenessIncreases direct market expansionNew product introductions and full registration of product portfolioDelivers operating margin improvementAligns talent and organization to ensure consi
Slide 22: Fiscal First Quarter Results and Guidance
* Sales $ in millions, except per share amounts Q1 2016(a) YoY Growth WW $83.7 -4% WW(b)(c) $84.0 -2% PV(b) $47.1 0% VA(b) 24.6 -7% O/S(b) $11.3 -9% US(b) $68.4 0% Int’l(b) $14.7 -17% Int’l(c) $15.7 -11% Q1 2016(d) YOY Growth Adjusted EBITDA $11.9 -17% Adjusted EPS $0.11 -31% Adjusted EPS(c) $0.12 -
Slide 23: Balance Sheet & Cash Flow
* $ in millions Aug 31, 2015 May 31, 2014 Cash & investments $22.0 $20.1 Net working capital $99.4 $94.6 Total assets $771.8 $773.6 Total debt $136.4 $137.7 Total stockholder’s equity $547.1 $545.0 $ in millions, except per share amounts 3 months ended Aug 31, 2015 3 months ended Aug 31, 2014 Cash F
Slide 24: Adjusted Income Statement
* $ in millions, except per share amounts 3 months ended Aug 31, 2015 3 months ended Aug 31, 2014 Sales $83.7 $87.3 Gross margins 51.5% 52.5% Operating expenses $35.2 $35.1 Operating income $8.0 $10.7 Operating margin 9.5% 12.3% Net Income (loss) $4.0 $5.7 EPS $0.11 $0.16 EBITDA $11.9 $14.3 Adjusted