Angiodynamics, Inc. · NASDAQ:ANGO
Angiodynamics — Needham & Company 14th Annual Healthcare Conference (April 2015)
30 slides from Angiodynamics's conference presentation, Apr 14, 2015
Slide 1: Needham & Company 14th Annual Healthcare Conference
Needham & Company 14 th Annual Healthcare Conference Joseph M. DeVivo, President & CEO Mark Frost, Executive Vice President & CFO April 14, 2015
Slide 2: Forward-Looking Statements
Forward - Looking Statements Notice Regarding Forward Looking Statements This 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 operati
Slide 3: Performance Update Q3 FY15 Results
Performance Update Q3 FY15 Results Q3 FY15 Actual $ 86.6 M $0.12 Sales Adjusted EPS (a) • EmboMedics Agreement • Next generation AngioVac launch • Celerity “no chest x - ray” claim received • Morpheus recall and discontinuance • HealthTrust PICC contract • Chris Crisman named SVP, Global PV Franchis
Slide 4: Profile of AngioDynamics
Profile of AngioDynamics Global, leading provider of innovative, image guided, minimally invasive solutions. • Three Franchises – Peripheral Vascular, Vascular Access and Oncology/Surgery • Founded 1988 | IPO May 2004 — ANGO (NASDAQ) • Worldwide presence with 1,300 employees and 7 operating location
Slide 5: Leadership
Leadership Joseph M. DeVivo President & CEO Mark Frost EVP & CFO John Soto EVP & CCO Stephen Trowbridge SVP & General Counsel Barbara Kucharczyk VP, Operations Mark Stephens SVP, Administration Gary Barrett VP, RA/QA 5 Benjamin Davis SVP, Business Development
Slide 6: Our Strategy is Working
Our Strategy is Working Growth Driver Performance* 6 76 % YTD FY 15 over YTD FY 14 BioFlo GROWTH 30 % YTD FY15 over YTD FY14 Microwave Ablation GROWTH 38% YTD FY15 over YTD FY14 AngioVac GROWTH 18 % YTD FY15 over YTD FY14 NanoKnife GROWTH • • • * As of the close of the third quarter on Feb. 28, 2015
Slide 7: AngioDynamics in FY14
AngioDynamics in FY 14 $100.4 $ 81.2 $87.3 $50.0 $109.3 $ 51.5 $24.8 $ 16.1 $25.9 $ 34.0 $51.0 $4.1 30% 40% 50% 60% 70% 80% 90% 100% -10% -5% 0% 5% 10% 15% 20% 25% 30% 35% 40% 7 -25% -20% -15% -10% -5% 0% 5% 10% 15% 20% 25% RFA Resection NanoKnife Microwave Venous Ports Dialysis PICCs Other Access C
Slide 8: AngioDynamics in FY20
AngioDynamics in FY20 $ 100.4 $81.2 $ 87.3 $50.0 $ 109.3 $51.5 $24.8 $16.1 $ 25.9 $34.0 $ 51.0 $4.1 30% 40% 50% 60% 70% 80% 90% 100% -10% -5% 0% 5% 10% 15% 20% 25% 30% 35% 40% 8 -15% -10% -5% 0% 5% 10% 15% 20% 25% 30% Harvest Fix/Divest Invest Scale Resection Core PV Dialysis NanoKnife AngioVac PICC
Slide 9: Operational Excellence
Operational Excellence Enterprise resource planning implementation Consolidation of N.Y. distribution center Consolidation of N.Y. manufacturing plants Supply chain optimization Product rationalization Lean initiatives x x Gross Margin Improvement FY 15 FY 16 FY17 FY 18 Basis Points 100 200 300 400
Slide 10: Strong Product Development Pipeline
Strong Product Development Pipeline* PV VA O/S Celerity X - Ray FY 15 BioFlo New Product Launch FY16 Celerity Navigation FY 16 BioFlo Port Line Extension FY 16 BioFlo PICC Line Extension FY 16 Next Generation Radio Frequency Ablation System FY17 Next Generation Microwave Ablation FY 16 Next Generati
Slide 11: Clinical Studies
Clinical Studies* PV O/S SeCure IDE for Expanded EVLT Indication FY18 Pancreas NanoKnife Pre - Clinical FY 16 Next Generation Microwave Ablation Pre - Clinical FY15 CROES II NanoKnife Prostate Study FY17 Prostate NanoKnife IDE FY18 O/S • LEIDEN – NanoKnife Pancreas • CROES Registry • NEAT – NanoKnif
Slide 12: Peripheral Vascular Franchise
Peripheral Vascular Franchise FY 14 Fluid Mgmt. Venous $79 $55 $ in millions $ 1.6 B Market 12% Share Thrombus Mgmt. $14 Other Core Products $45 Total PV $ 193 YoY Growth - 3% 18 % 109% 5 % 7% 12 YTD FY 15 * Growth 2 % - 3% 16 % - 2% 1 % * As of the close of the third quarter on Feb. 28, 2015.
Slide 13: Large Unmet Opportunity
Large Unmet Opportunity Additional: Annual Incidence Venous Thromboembolism (VTE) Incidence • ~ 1 Million VTE Events per Year in US • ~ 300 , 000 VTE Deaths per Year in US - # 3 cause Heit JA, et al. Blood. 2005 ; 106 : 267 A. Murphy SL, et al. Deaths: Preliminary Data for 2010 . National Vital Stat
Slide 14: Solution: AngioVac
Solution: AngioVac FDA cleared & CE Mark approved Attractive pricing & higher margins Scalable platform for next generation devices Newly expanded U.S. indication 14
Slide 15: Solution: AngioVac
Solution: AngioVac FDA cleared & CE Mark approved Attractive pricing & higher margins Scalable platform for next generation devices Newly expanded U.S. indication 15
Slide 16: Solution: Laser Vein Treatment
Solution: Laser Vein Treatment 30 M People in U.S. w/ varicose veins Large Market Opportunity < 2 % Receive treatment Projected Growth FY 20 Sales ̴ $ 80 M FY 14 Sales $ 55 M 16
Slide 17: Vascular Access Franchise
Vascular Access Franchise FY 14 PICCs Ports $ 51 $32 $ in millions Dialysis $ 19 Total VA $ 106 $1.0B Market 11 % Share YoY Growth 0 % 3% - 2 % 0 % 17 YTD FY15* Growth - 2 % 9% 5 % 3% * As of the close of the third quarter on Feb. 28 , 2015 .
Slide 18: 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. Less Thrombus Accumulation BioFlo PICCs BioFlo Ports Vs. common PICC Vs. non - co
Slide 19: Reducing Healthcare Costs
Reducing Healthcare Costs Facility 1 • 1,251 BioFlo PICCs placed • 85 % reduction in symptomatic UEDVT • 7 UEDVTs reported from 1251 PICCs • UEDVT rate of .45% versus prior 3.1% Facility 2 • 272 BioFlo PICCs placed • 42% reduction in Occlusions • 19.7 % reduction in baseline occlusion rate Facility
Slide 20: Celerity Tip Location
Celerity Tip Location Tip location, coupled with our innovative BioFlo Technology, will improve our competitive position in the PICC market. Ease of use • Use with existing ultrasound • Three lead EKG - based platform • Predictable and reliable confirmation • 50% less cost vs. competitors Clinical e
Slide 21: PICC Strategy Decision
PICC Strategy Decision • Company withdrew Morpheus PICC line from the market following unacceptable complaint levels • Q 3 FY 15 PICC revenues down 11 % • $ 5 million inventory write - off • Expected revenue reduction of $ 1 million to $ 1.5 million in Q 4 FY 15 • Streamlined, robust PICC offering •
Slide 22: Oncology/Surgery Franchise
Oncology/Surgery Franchise FY14 Thermal Ablation NanoKnife $ 30 $14 $ in millions Resection/Other $ 5 Total O/S $ 49 $ 2 25M Market 22 % Share YoY Growth 10 % 6 % - 18 % 5% 22 YTD FY15* Growth 5 % 18% 7 % 9 % * As of the close of the third quarter on Feb. 28 , 2015 .
Slide 23: Expanding Leadership in Tissue Ablation
Expanding Leadership in Tissue Ablation Radiofrequency Microwave IRE THERMAL NON - THERMAL AngioDynamics offers a full complement of tissue ablation products that provide clinicians maximum choice in treating patients. 23
Slide 24: Re-Entering the Embolization Market
Re - Entering the Embolization Market On April 9 , 2015 , AngioDynamics entered an agreement with EmboMedics Inc., which develops injectable & resorbable microspheres and expects to file for U.S. FDA 510 (k) clearance for the embolization of hypervascular tumors by January 2016 . x x x Novel Technol
Slide 25: International Growth Strategy
International Growth Strategy Market Led, Efficient & Aligned • Region - based business model improves competitiveness • Increased direct market expansion • New product introductions and full registration of product portfolio • Delivering operating margin improvement • Align talent and organization
Slide 26: Fiscal Third Quarter Results
Fiscal Third Quarter Results (a) There is no difference in the number of sales days between the first quarter of fiscal 2014 and the first quarter of fiscal 2015 . (b) Adjusted results exclude costs relating to acquisitions, debt financing, business restructuring, litigation, facility consoli dat io
Slide 27: Balance Sheet & Cash Flow
Balance Sheet & Cash Flow $ in millions Feb 28, 2015 May 31 , 2014 Cash & investments $ 21.4 $17.9 Net working capital $ 97.6 $ 85.0 Total assets $ 783.1 $798.9 Total debt $148.9 $ 142.7 Total stockholder’s equity $ 543.8 $536.8 $ in millions, except per share amounts 9 months ended Feb 28, 2015 9 M
Slide 28: Adjusted Income Statement
Adjusted Income Statement (a) $ in millions, except per share amounts 9 months ended Feb 28, 2015 9 Months ended Feb 28 , 2014 Sales $ 266.1 $260.4 Gross margins 51.2 % 50.8 % Operating expenses $ 105.4 $105 Operating income $31.0 $ 27.3 Operating margin 11.6 % 10.5% Net income $16.2 $ 13.8 EPS $ 0.
Slide 29: AngioDynamics Transformation
AngioDynamics Transformation FY 11 FY12 FY 13 FY 14 Net Sales $216M $ 222 M $342M $ 354 M Pro Forma 0 % 3 % - 1 % b 4% a) FY 15 revenue guidance midpoint. Exc. BSC – 5% b) On a pro forma basis prior year sales for AngioDynamics and Navilyst Medical were $ 344.6 million. Investor Profile – – • Major
Slide 30: Needham & Company 14th Annual Healthcare Conference
Needham & Company 14 th Annual Healthcare Conference Joseph M. DeVivo, President & CEO Mark Frost, Executive Vice President & CFO April 14 , 2015
AngioDynamics — Needham & Company 14th Annual Healthcare Conference (April 2015) on 6ix