- Total Pro Forma Worldwide Revenue: $71.1 million, growth of approximately 2% year over year.
- MedTech Segment Revenue: Grew 11% on a pro forma basis.
- Auryon Revenue: Grew 12%.
- NanoKnife Revenue: Grew 43%, including probe growth of 18%.
- Mechanical Thrombectomy Business: Declined approximately 2%.
- AngioVac Sales: Declined 4% year over year, but grew 6% sequentially over Q3 FY '24.
- AlphaVac Sales: Grew 7%, with revenue of $1.9 million, representing sequential growth of nearly 68% over Q3 FY '24.
- Med Device Segment Revenue: Declined approximately 4%.
- Full Year Revenue: $270.7 million, growth of 5.3%, including MedTech growth of 10.1% and Med Device growth of 2.4%.
- Cash and Cash Equivalents: More than $76 million.
- Adjusted EBITDA: $1.5 million.
- Adjusted Loss Per Share: $0.05 during the fourth quarter.
- Full Year Adjusted EBITDA Loss: $3.2 million.
- Full Year Adjusted Loss Per Share: $0.45.
- Gross Margin for Q4 FY 2024: 54.3%, flat compared to the year-ago period.
- MedTech Gross Margin: 64.1%, a decrease of 70 basis points.
- Med Device Gross Margin: 47.4%, a decrease of 60 basis points.
- Full Year Gross Margin: 53.8%, a decrease of 110 basis points versus prior year.
- Research and Development Expense: $6.7 million or 9.5% of sales.
- SG&A Expense: $35 million, representing 49.2% of sales.
- Adjusted Net Loss for Q4 FY 2024: $2.2 million or an adjusted loss per share of $0.05.
- GAAP Net Loss for Q4 FY 2024: $13.4 million or a loss per share of $0.33.
- Operating Cash Flow for Q4 FY 2024: $5 million.
- Capital Expenditures: $0.6 million.
- Stock Repurchase Program: Authorized purchases of up to $15 million of outstanding common shares.
- FY 2025 Revenue Guidance: $282 million to $288 million, representing growth of 4.2% to 6.4% over FY 2024.
- FY 2025 Gross Margin Guidance: 52% to 53%.
- FY 2025 Adjusted EBITDA Guidance: Loss of $2.5 million to $0.
- FY 2025 Adjusted Loss Per Share Guidance: $0.38 to $0.42.
Release Date: July 16, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- AngioDynamics Inc (ANGO, Financial) reported a 2% year-over-year growth in total pro forma worldwide revenue for the fourth quarter, reaching $71.1 million.
- The MedTech segment showed strong performance with an 11% growth, driven by Auryon (12% growth) and NanoKnife (43% growth).
- The company generated $5 million in excess cash flow from operations and adjusted EBITDA of $1.5 million in the fourth quarter.
- For the full fiscal year, AngioDynamics Inc (ANGO) achieved a revenue of $270.7 million, representing a 5.3% growth.
- The company finished the fiscal year with over $76 million in cash and cash equivalents, significantly strengthening its balance sheet.
Negative Points
- The mechanical Thrombectomy business declined approximately 2% during the fourth quarter.
- Revenue from the Med Device segment declined approximately 4%, primarily due to impacts from reorganization and manufacturing headwinds.
- Gross margin for the fourth quarter was flat at 54.3% compared to the previous year, with MedTech gross margin decreasing by 70 basis points.
- The company recorded a GAAP net loss of $13.4 million or a loss per share of $0.33 in the fourth quarter.
- Adjusted EBITDA for the fourth quarter was only $1.5 million, indicating modest profitability amidst ongoing strategic transformations.
Q & A Highlights
Q: Can you elaborate on the methodology behind the 10% to 12% growth guidance for MedTech, particularly regarding the prostate indication?
A: Stephen Trowbridge, CFO: The guidance includes some expectations for NanoKnife, especially with the prostate indication. However, we anticipate a steady growth trajectory rather than a significant spike post-indication. The primary growth driver will be mechanical thrombectomy, particularly with the PE indication for AlphaVac.
Q: What are the new product initiatives for AlphaVac, and how do you ensure freedom to operate amid IP litigation in this space?
A: Stephen Trowbridge, CFO: The new initiatives are line extensions within the AlphaVac family, driven by customer feedback. We have a robust IP portfolio ensuring freedom to operate and are prepared to protect our IP as necessary.
Q: What efforts have been made to stabilize AngioVac sales, and what is the visibility for maintaining this stability in FY '25?
A: James Clemmer, CEO: AngioVac is well-suited for the right atrium space. We've retrained our sales force to focus exclusively on AngioVac and AlphaVac, ensuring clinical and R&D support to maintain stability and growth.
Q: Has AlphaVac PE moved into full launch, and what is the ramp-up plan for this year?
A: James Clemmer, CEO: Yes, AlphaVac PE moved into full commercial launch in June. Initial feedback aligns with our study data, showing strong efficacy and efficiency, which supports our growth plans.
Q: Can you discuss the reimbursement efforts for NanoKnife in prostate treatment and the expected timeline?
A: Stephen Trowbridge, CFO: We are working on shoring up the reimbursement pathway, including ICD-10 and CPT codes. The full value of NanoKnife will be realized through these efforts and the FDA indication, with ongoing education for urologists.
Q: Are there any differences in commercial strategies between the US and Europe for AlphaVac PE, and what is the expected impact on operating expenses?
A: James Clemmer, CEO: The fundamentals of treating PE are the same, but market development differs. Our European team has undergone extensive training, and we have aligned with clinical partners to support growth. The investments are already built into our FY '25 projections.
Q: What is the specific prostate patient population suitable for NanoKnife treatment?
A: Stephen Trowbridge, CFO: NanoKnife is ideal for intermediate-risk prostate cancer patients, offering a treatment option that preserves quality of life without the severe side effects of radical prostatectomy or the inaction of watchful waiting.
Q: What are the key drivers behind the stability in AngioVac sales?
A: James Clemmer, CEO: AngioVac's unique design for the right atrium space, combined with retrained and specialized sales and clinical teams, has stabilized sales. We continue to explore additional applications and maintain strong clinical support.
Q: How do you plan to leverage the recent FDA approval for AlphaVac PE in the US market?
A: James Clemmer, CEO: We have moved into full commercial launch, with trained sales and clinical teams targeting interested customers. Initial feedback is positive, aligning with our study data, and we are focused on driving growth in this significant market.
Q: What are the expected financial impacts of the strategic transformation initiatives, particularly the shift to an outsourced manufacturing model?
A: Stephen Trowbridge, CFO: The shift to outsourced manufacturing is expected to generate approximately $15 million in annualized savings by fiscal 2027. This will fundamentally change our manufacturing overhead structure, improving our bottom line.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
