Angiodynamics, Inc. · NASDAQ:ANGO
Angiodynamics — Merger or Acquisition (April 2012)
21 slides from Angiodynamics's merger presentation, Apr 18, 2012
Slide 1: Schedule 14A Proxy Statement Cover
UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 SCHEDULE 14A (Rule 14a-101) INFORMATION REQUIRED IN PROXY STATEMENT SCHEDULE 14A INFORMATION Proxy Statement Pursuant to Section 14(a) of the Securities Exchange Act of 1934 Filed by the registrant x Filed by a party other than
Slide 2: Joseph DeVivo, President & CEO, April 2012
Filed by AngioDynamics, Inc. Pursuant to Rule 14a-6 Under the Securities Exchange Act of 1934 Joseph DeVivo President & CEO April 2012 | NASDAQ: ANGO
Slide 3: Forward-Looking Statements
Forward-Looking Statements Notice Regarding Forward-Looking Statements This presentation includes “forward-looking statements” intended to qualify for the safe harbor from liability established by the Private Securities Litigation Reform Act of 1995. Investors can identify these statements by the fa
Slide 4: AngioDynamics at a Glance
AngioDynamics at a Glance Mission To improve patient health by being the Worldwide Presence | Albany NY - HQ global leader in 700 Employees | 5 Operating Locations delivering innovative minimally invasive therapies for Peripheral Vascular FY11 Sales $216M Gross Margin 58.3% Net Income $8.1M Q3 FY12
Slide 5: Large, Attractive Market Opportunities
Large, Attractive Market Opportunities ANGO Q3 Total Available Market GrowthFY12 Revenue Market (% of total) Peripheral Vascular 5% $1.6B $87M +4% Vascular Access 8% $0.8B $63M (1%) Oncology/ Surgery 11% (16%) $0.6B $66M* (6%) $52M $3B TAM 7% ($216M) •End 2010 estimate * Includes $28M in LC Bead sal
Slide 6: Peripheral Vascular
Peripheral Vascular Varicose Vein Ablation •U.S. $220M Market | 10% CAGR | 5% U.S. penetration • 80 million+ Americans suffer from •Growth Drivers: reimbursement, training, some form of venous disorder practice development • Currently only 6% of all potential patients have their veins treated Thromb
Slide 7: Vascular Access
Vascular Access Implantable Ports •$180M U.S. Market | 5% CAGR •Growth Drivers: Better Device Performance, Better Device • 100,000th Smart Port sold in 2011 Efficiency, Increased Utilization • 350,000 AngioDynamics ports sold since FY07 PICCs •Largest U.S. vascular access market $400M | 7% CAGR •Gro
Slide 8: Oncology/Surgery
Oncology/Surgery StarBurst® Radio Frequency Ablation Surgical Resection - Habib® •WW Market $250M | 10% CAGR •WW Market $162M | 9% CAGR •Growth Driver: temperature monitoring to ensure complete ablation NanoKnife® System •FDA 510(k) for surgical ablation of soft tissue + CE mark* •Introduced commerc
Slide 9: NanoKnife System Pancreatic Study
NanoKnife® System Pancreatic Study Market EU NanoKnife® Panc Study (ONC- •165,000 new patients/year in 208) Objective developed countries WW1 To evaluate the safety and feasibility of the NanoKnife •Greatest unmet clinical need - 4% of LEDC System when used to treat unresectable pancreatic diagnosed
Slide 10: Strong US Base, International Opportunity
Strong US Base, International Opportunity US: 85% of WW Sales International: 15% Strategy •Focus on high-growth markets •International expansion •Invest in R&D, transformational tech •Accretive Acquisitions
Slide 11: AngioDynamics & Navilyst Medical: Improved Financial Performance
AngioDynamics & Navilyst Medical Creating a World-Class Platform for Growth Improved Financial Performance
Slide 12: The Acquisition of Navilyst Medical
The Acquisition of Navilyst Medical A Compelling Deal Expected to Drive Significant Shareholder Value • The Navilyst purchase price of $357mm is meaningfully reduced by the value of the identified cost savings and the acquired tax assets - The Economic Value(1) paid for Navilyst is estimated to be $
Slide 13: Navilyst Standalone EBITDA Forecast
Navilyst Standalone EBITDA Forecast Navilyst Projected Adjusted EBITDA(1) ($mm) Key Performance Drivers $26 • Continued sales growth in the Vascular Access and International divisions, and the return to growth of the Fluid Management business, will drive Navilyst increases in EBITDA Adjusted EBITDA
Slide 14: Overview of Net Cost Savings (cont'd)
Overview of Net Cost Savings (cont’d) Potential for Additional Cost Savings Reductions in waste and product recalls; Working capital optimization; Operational Excellence Improved capacity utilization and leaner operations Strategic Sourcing Supplier bundling, purchase volume discounts, inventory man
Slide 15: Revenue Synergies
Revenue Synergies Optimizing Our U.S. Go-to-Market Strategies Commercial Focus and Scale Offer Compelling Opportunities for Growth (1) BioFlo® is currently pending FDA approval.
Slide 16: Significant Integration Planning Underway
Significant Integration Planning Underway Increasing Shareholder Value After the Acquisition • Integration planning is our top priority and is well underway - Retained outside experts to assist in the process - Established an Integration Management Office - Creating an Operational Excellence group t
Slide 17: Pro Forma FY13 Guidance
Pro Forma FY13 Guidance Reviewing the Components of Pro Forma Adjusted EBITDA (2) • $6mm of net cost savings in FY13 (1) FY13E Adjusted • $12.5mm of fully-implemented cost savings by FY15 (1) EBITDA (2) Estimated Cost Savings Cost Savings Medical Device Tax • Excludes potential cost savings associat
Slide 18: Optimized Capital Structure and Cash Flow
Optimized Capital Structure and Cash Flow Impact on the Balance Sheet Total Debt / EBITDA Overview of Financing • ~$150mm of committed financing with coupon of LIBOR +250 bps • ~$100mm of balance sheet cash used as consideration • Optimizes capital structure on pro forma basis; lowering cost of capi
Slide 19: Summary Estimated Financial Impact
Summary Estimated Financial Impact Driving Shareholder Value in the Near- and Long-term ~$360mm Net Sales in FY13 Net Sales Annual net sales growth in the mid-to-high single digits from FY13 to FY16 ~$60mm Pro Forma Adjusted EBITDA* in FY13 ~$70mm Run-rate Adjusted EBITDA** EBITDA Expands EBITDA mar
Slide 20: Additional Information
Additional Information AngioDynamics has filed with the Securities and Exchange Commission (the “SEC”) a proxy statement regarding the issuance of the AngioDynamics common stock in connection with the proposed transaction. The proxy statement has been mailed to AngioDynamics’ stockholders. INVESTORS
Slide 21: AngioDynamics
ANGIODYNAMICS°