Angiodynamics, Inc. · NASDAQ:ANGO
Angiodynamics — Merger or Acquisition (April 2019)
17 slides from Angiodynamics's merger presentation, Apr 18, 2019
Slide 1: AngioDynamics Divestiture Announcement: NAMIC Fluid Management Business
AngioDynamics Divestiture Announcement: NAMIC Fluid Management BusinessApril 17, 2019
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: Transaction Overview
Transaction Overview Transaction Value: $167.5 millionTransaction Structure: Cash free/debt freeAnticipated Closing: By end of FY19 contingent on HSR review and transition/ancillary agreementsNAMIC Assets Divested:Approximately $85mm in revenue (U.S. = $65mm, Int’l = $20mm)Approximately $30mm in EBI
Slide 4: Executing on Our Strategy
Executing on Our Strategy Accountability Focus Attractive Financial Profile Growth Drivers Revenue Growth 5%+ Capital Structure Flexibility Gross Margin Expansion Focused Portfolio Funding Investment Opportunities R&D + M&A to Accelerate Innovation NanoKnife AngioVac BioFlo InnovativeTechnologies +
Slide 5: Driving Future Growth
Driving Future Growth Net cash balance of ~$74 million plus credit facility access will provide over $150 million of available capital to deploy Internal Investments:Oncology, NanoKnife PlatformThrombus Management, AngioVacSelective investments in Core and Vascular Access categories External Investm
Slide 6: Portfolio Optimization and Strategy
Portfolio Optimization and Strategy 6
Slide 7: Oncology Treatment Options
Oncology Treatment Options Deliver disruptive innovations that improve quality of life during treatment, advance outcomes, extend life, and evolve toward curative therapy modalities Oncology Caregiver and Patient Journey
Slide 8: NanoKnife as a Platform: Cancer Indications
PancreaticCancer LungCancer ProstateCancer BrainCancer 57K CASES DIAGNOSED ANNUALLY8% 5-YEAR SURVIVAL RATEPMA PATHWAY CATEGORY B DESIGNATION 165K CASES DIAGNOSED ANNUALLY99% 5-YEAR SURVIVAL RATEUNDESIRABLE QUALITY OF LIFE OUTCOMESFOCAL THERAPY MOMENTUMRADIADYNE ADVANTAGES 234K CASES DIAGNOSED ANNUAL
Slide 9: NanoKnife IDE Approval
FDA IDE APPROVAL - March 28, 2019STUDY DESIGN – One Study, Two ComponentsA Randomized Controlled Trial (RCT) at up to 15 sites A Real-World Evidence, Next-Generation Registry (RWE) at up to 30 sitesAngioDynamics expects each NanoKnife arm to consist of approximately 250 patients with an equal number
Slide 10: Markets & Opportunities: Oncology
MARKETS & OPPORTUNITIES: Oncology Radio Frequency Ablation MICROWAVE ABLATION, IRREVERSIBLE ELECTROPORATON Adaptive and IMMUNO-Oncology First Generation NxGen Platforms Stabilization Balloons andReal-Time Dosimetry Biosentry tract-sealant * Current Generation Ablative Oncology Solutions Radiation Th
Slide 11: Market & Opportunity: Thrombus Management
MARKET & OPPORTUNITY: Thrombus Management LOW VOLUMEHIGH ASP GROWING MARKET ATTRACTIVE MKT. REVENUE LARGEADDRESSABLE PATIENT Pop. HIGH VOLUMELOW ASP S I M P L E C O M P L E X M O D E R A T E C a t h e t e r D I r e c t e d T h r o m b o l y s I s P E R C U T A N E O U S T H R O M B E C T O M Y L a r
Slide 12: Secondary Areas of Investment
Secondary Areas of Investment Vascular Access Broad offering of peripherally inserted central catheters (PICCs), midline catheters, implantable ports, dialysis catheters and related accessories and supplies.Deliver, primarily, short-term drug therapies, such as chemotherapeutic agents and antibiotic
Slide 13: Financial Metrics: FY20 through FY22
Financial Metrics: FY20 through FY22 13
Slide 14: Revenue, Gross Margin and Adjusted EPS
Revenue, Gross Margin and Adjusted EPS 4% - 6% 6% - 8% 7% - 9% -1.2% -1.5% 0% - 2%* * FY’19 Excludes 2 Mid Year Acquisitions Revenue Gross Margin % Adjusted EPS 50.4% 54% - 55% 60% - 61% ~400 Bps ~400 Bps ~200 Bps $0.70 - $0.80 $0.45 - $0.55 $0.25 - $0.30 $0.73 $0.74 $0.82 - $0.86 3-Yr CAGR: 12.5% 3
Slide 15: FY2019 to FY2020 Revenue and Gross Margin
FY’2019 to FY’2020 Revenue Gross Margin % FY’19 Divestiture Discontinued Products Growth FY’20 VIT $204 - 205 ($84 - $85) ($5 - $6) $4 - $5 $116 - $118 VA $94 - $96 $0 - $2 $94 - $96 Onc $56 - $58 $14 - $16 $70 - $72 Total $354 - $359 $280 - $286 54% - 55% 58% - 59% ~ 400 bps ~ 30 bps ~ 30 bps Adjus
Slide 16: Investment Decision Framework
Investment Decision Framework External InvestmentsMergers & AcquisitionsShare RepurchasesPaying Down Debt Internal InvestmentsResearch & DevelopmentSelling & MarketingManufacturing Return On InvestmentModel against hurdle rates and WACC to compare internal and external investment options Current Fin
Slide 17: Portfolio Optimization to Shape our Future
Portfolio Optimization to Shape our Future Projected 3-Yr Outcomes Revenue6% - 8% CAGR Gross Margin60% - 61% Adjusted EPS55% - 60% CAGR Adjusted EBITDAS~$60M by 2022 Free Cash Flow~$50M+ by 2022 Invest in differentiated technologiesCreate leaner operationsImprove financial profileIncrease available