Business Wire | Jul 13, 2021 07:01AM EDT

AngioDynamics Reports Fiscal 2021 Fourth Quarter and Full-Year Financial Results

Jul. 13, 2021

LATHAM, N.Y.--(BUSINESS WIRE)--Jul. 13, 2021--AngioDynamics, Inc. (NASDAQ: ANGO), a leading provider of innovative, minimally invasive medical devices for vascular access, peripheral vascular disease, and oncology, today announced financial results for the fourth quarter and fiscal year 2021, which ended May 31, 2021.

"The AngioDynamics team demonstrated excellent performance, resilience, and strong execution in what was a uniquely challenging year. We saw the pressure from COVID-19 gradually alleviate over the course of the year, and our business is now trending close to normalized run rates. During fiscal 2021, we took significant steps forward in our transformation into a growth-oriented, technology-driven company, building on the foundation we put in place over the past several years," commented Jim Clemmer, President and Chief Executive Officer of AngioDynamics, Inc. "Our investments in our key technology platforms are driving our growth, as evidenced by a strong first-year contribution from Auryon and continued strength from AngioVac. I am excited about the future of AngioDynamics as we continue to develop differentiated products like AlphaVac, which we anticipate launching later this year, to serve larger and faster growing markets, pursue regulatory milestones and expand our patient base."

Fourth Quarter 2021 Financial Results

Net sales for the fourth quarter of fiscal 2021 were $76.8 million, an increase of 31.7% compared to the prior-year quarter. All year-over-year comparisons have been affected by the disruption to procedure volumes resulting from the COVID-19 global pandemic.

Foreign currency translation did not have a significant impact on the Company's sales in the quarter.

* Endovascular Therapies (formerly Vascular Interventions and Therapies) net sales were $38.1 million, an increase of 72.3%, compared to $22.1 million a year ago. Growth was driven by broad strength across the business relative to the prior-year period, led by sales of the Auryon and AngioVac platforms. Auryon sales during the quarter were $4.6 million. * Oncology net sales were $14.3 million, an increase of 14.2%, compared to $12.5 million in the prior-year period. The year-over-year growth was primarily due to increased sales of NanoKnife and Microwave disposables and sales of the BioSentry Tract Sealant System, partially offset by continued softness in capital spending and our international markets. * Vascular Access net sales were $24.5 million, an increase of 3.2%, compared to $23.7 million a year ago.

U.S. net sales in the fourth quarter of fiscal 2021 were $63.6 million, an increase of 42.6% from $44.6 million a year ago. International net sales were $13.2 million, a decrease of 3.6%, compared to $13.7 million a year ago.

Gross margin for the fourth quarter of fiscal 2021 was 55.1%, an increase of 330 basis points compared to the fourth quarter of fiscal 2020, primarily due to a reduction in COVID-related costs. During the quarter, gross margin was negatively impacted by macro forces including labor shortages and increased costs for labor, raw materials, and freight. Gross margins also continued to be impacted by Auryon startup costs. During the fourth quarter, inventory was reduced by $0.4 million when compared to inventory levels on February 28, 2021. During the fiscal year, inventory levels have been reduced by $11.3 million.

The Company recorded a net loss of $19.5 million, or a loss per share of $0.51, in the fourth quarter of fiscal 2021. This compares to a net loss of $157.0 million, or a loss per share of $4.13, a year ago. The current-year net loss includes a $14.0 million write-off of the OARTrac intangible assets, while the prior-year net loss includes a goodwill impairment charge of $158.6 million.

Excluding the items shown in the non-GAAP reconciliation table below, adjusted net loss for the fourth quarter of fiscal 2021 was $0.1 million, and adjusted earnings per share was $0.00, compared to adjusted net loss in the prior-year period of $2.1 million and adjusted loss per share of $0.06.

Adjusted EBITDA in the fourth quarter of fiscal 2021, excluding the items shown in the reconciliation table below, was $4.5 million, compared to $0.6 million in the fourth quarter of fiscal 2020.

In the fourth quarter of fiscal 2021, the Company generated free cash flow of $3.1 million. As of May 31, 2021, the Company had $48.2 million in cash and cash equivalents compared to $54.5 million in cash and cash equivalents on February 28, 2021. The Company reduced its debt outstanding under its revolving credit facility at May 31, 2021, to $20.0 million compared to $30.0 million on February 28, 2021.

Full-Year 2021 Financial Results

For the twelve months ended May 31, 2021:

* Net sales were $291.0 million, an increase of 10.2%, compared to $264.2 million for the same period a year ago. * The Company's net loss from continuing operations was $31.5 million, or a loss per share of $0.82, compared to a net loss of $166.8 million, or a loss of $4.39 per share, a year ago. The current-year net loss includes a $14.0 million write-off of the OARTrac intangible assets, while the prior-year net loss includes a goodwill impairment charge of $158.6 million. * Gross margin declined 300 basis points to 53.9% from 56.9% a year ago due to the Company's COVID-related operating plan and increased labor, material, and freight costs, as well as Auryon start-up costs. * Excluding the items shown in the non-GAAP reconciliation table below, adjusted net income was $1.9 million, with adjusted earnings per share of $0.05 per share, compared to adjusted net income and adjusted earnings per share of $3.5 million, or $0.09 per share, a year ago. Adjusted net income and adjusted earnings per share in fiscal 2021 includes a $1.9 million, and $0.04 per share benefit, respectively, related to the reimbursement of certain expenses under the CARES Act. * Adjusted EBITDA, excluding the items shown in the reconciliation table below, was $19.5 million, compared to $18.0 million for the same period a year ago.

Fiscal Year 2022 Financial Guidance

The Company expects its fiscal year 2022 net sales to be in the range of $305 to $310 million, gross margin to be approximately 55.0% and adjusted earnings per share in the range of $0.00 to $0.05 as the Company continues to invest in new product launches to drive future growth.

Conference Call

The Company's management will host a conference call today at 8:00 a.m. ET to discuss its fourth quarter and fiscal year 2021 results.

To participate in the conference call, dial 1-877-407-0784 (domestic) or +1-201-689-8560 (international) and refer to the passcode 13720741.

This conference call will also be webcast and can be accessed from the "Investors" section of the AngioDynamics website at www.angiodynamics.com. The webcast replay of the call will be available at the same site approximately one hour after the end of the call.

A recording of the call will also be available from 11:00 a.m. ET on Tuesday, July 13, 2021, until 11:59 p.m. ET on Tuesday, July 20, 2021. To hear this recording, dial 1-844-512-2921 (domestic) or +1-412-317-6671 (international) and enter the passcode 13720741.

As a reminder, the Company will also be hosting its Investor and Technology Day beginning at 9:30 a.m. ET this morning. Additional information and registration instructions can be found on the "Investors" section of the AngioDynamics website at www.angiodynamics.com. The webcast replay of the event will be archived on the same site.

Use of Non-GAAP Measures

Management uses non-GAAP measures to establish operational goals and believes that non-GAAP measures may assist investors in analyzing the underlying trends in AngioDynamics' business over time. Investors should consider these non-GAAP measures in addition to, not as a substitute for or as superior to, financial reporting measures prepared in accordance with GAAP. In this news release, AngioDynamics has reported adjusted EBITDA, adjusted net income, adjusted earnings per share, and free cash flow. Management uses these measures in its internal analysis and review of operational performance. Management believes that these measures provide investors with useful information in comparing AngioDynamics' performance over different periods. By using these non-GAAP measures, management believes that investors get a better picture of the performance of AngioDynamics' underlying business. Management encourages investors to review AngioDynamics' financial results prepared in accordance with GAAP to understand AngioDynamics' performance taking into account all relevant factors, including those that may only occur from time to time but have a material impact on AngioDynamics' financial results. Please see the tables that follow for a reconciliation of non-GAAP measures to measures prepared in accordance with GAAP.

About AngioDynamics, Inc.

AngioDynamics, Inc. is a leading provider of innovative, minimally invasive medical devices used by professional healthcare providers for vascular access, peripheral vascular disease, and oncology. AngioDynamics' diverse product lines include market-leading ablation systems, vascular access products, angiographic products and accessories, drainage products, thrombolytic products and venous products. For more information, visit www.angiodynamics.com.

Safe Harbor

This release 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, cash flows, business strategy, budgets, projected costs, capital expenditures, products, competitive positions, growth opportunities, plans and objectives of management for future operations, as well as statements that include the words such as "expects," "reaffirms," "intends," "anticipates," "plans," "believes," "seeks," "estimates," "projects", "optimistic," or variations of such words and similar expressions, are forward-looking statements. These forward-looking statements are not guarantees of future performance and are subject to risks and uncertainties. Investors are cautioned that actual events or results may differ materially from AngioDynamics' expectations, expressed or implied. Factors that may affect the actual results achieved by AngioDynamics include, without limitation, the scale and scope of the COVID-19 global pandemic, the ability of AngioDynamics to develop its existing and new products, technological advances and patents attained by competitors, infringement of AngioDynamics' technology or assertions that AngioDynamics' technology infringes the technology of third parties, the ability of AngioDynamics to effectively compete against competitors that have substantially greater resources, future actions by the FDA or other regulatory agencies, domestic and foreign health care reforms and government regulations, results of pending or future clinical trials, overall economic conditions, the results of on-going litigation, challenges with respect to third-party distributors or joint venture partners or collaborators, the results of sales efforts, the effects of product recalls and product liability claims, changes in key personnel, the ability of AngioDynamics to execute on strategic initiatives, the effects of economic, credit and capital market conditions, general market conditions, market acceptance, foreign currency exchange rate fluctuations, the effects on pricing from group purchasing organizations and competition, the ability of AngioDynamics to integrate acquired businesses, as well as the risk factors listed from time to time in AngioDynamics' SEC filings, including but not limited to its Annual Report on Form 10-K for the year ended May 31, 2020. AngioDynamics does not assume any obligation to publicly update or revise any forward-looking statements for any reason.

In the United States, the NanoKnife System has received a 510(k) clearance by the Food and Drug Administration for use in the surgical ablation of soft tissue and is similarly approved for commercialization in Canada, the European Union, and Australia. The NanoKnife System has not been cleared for the treatment or therapy of a specific disease or condition.

ANGIODYNAMICS, INC. AND SUBSIDIARIESCONSOLIDATED INCOME STATEMENTS(in thousands, except per share data)

Three Months Ended Twelve Months Ended

May 31, May 31, 2020 May 31, May 31, 2020 2021 2021

(unaudited) (unaudited) (audited)



Net sales $ 76,842 $ 58,332 $ 291,010 $ 264,157

Cost of sales(exclusive of 34,522 28,120 134,222 113,885 intangibleamortization)

Gross profit 42,320 30,212 156,788 150,272

% of net sales 55.1 % 51.8 % 53.9 % 56.9 %



Operating expenses

Research and 9,104 7,232 36,390 29,682 development

Sales and marketing 23,820 18,207 81,306 78,634

General and 9,131 8,221 35,918 37,872 administrative

Amortization of 4,298 4,704 18,136 18,121 intangibles

Goodwill impairment - 158,578 - 158,578

Change in fair value ofcontingent 379 (11,647 ) 89 (11,531 )consideration

Acquisition,restructuring and other 17,175 1,528 20,232 6,014 items, net

Total operating 63,907 186,823 192,071 317,370 expenses

Operating loss (21,587 ) (156,611 ) (35,283 ) (167,098 )

Interest expense, net (185 ) (235 ) (861 ) (907 )

Other income (expense), (167 ) (63 ) 92 (130 )net

Total other expense, (352 ) (298 ) (769 ) (1,037 )net

Loss before income tax (21,939 ) (156,909 ) (36,052 ) (168,135 )benefit

Income tax expense (2,471 ) 158 (4,504 ) (1,348 )(benefit)

Net loss $ (19,468 ) $ (157,067 ) $ (31,548 ) $ (166,787 )



Loss per share

Basic $ (0.51 ) $ (4.13 ) $ (0.82 ) $ (4.39 )

Diluted $ (0.51 ) $ (4.13 ) $ (0.82 ) $ (4.39 )



Weighted average shares outstanding

Basic 38,525 38,072 38,342 37,961

Diluted 38,525 38,072 38,342 37,961

ANGIODYNAMICS, INC. AND SUBSIDIARIESGAAP TO NON-GAAP RECONCILIATION(in thousands, except per share data)

Reconciliation of Net Loss to non-GAAP Adjusted Net Income (Loss):Three Months Ended

Twelve Months Ended

May 31, 2021

May 31, 2020

May 31, 2021

May 31, 2020

(unaudited)

(unaudited)

Net loss

$

(19,468

)

$

(157,067

)

$

(31,548

)

$

(166,787

)

Amortization of intangibles

4,298

4,704

18,136

18,121

Goodwill impairment

-

158,578

-

158,578

Change in fair value of contingent consideration

379

(11,647

)

89

(11,531

)

Dosimetry inventory write-off (1)

-

958

-

958

Acquisition, restructuring and other items, net (2)

17,175

1,528

20,232

6,014

Write-off of deferred financing fees (3)

-

-

-

593

Tax effect of non-GAAP items (4)

(2,451

)

799

(5,057

)

(2,406

)

Adjusted net income (loss)

$

(67

)

$

(2,147

)

$

1,852

$

3,540

Reconciliation of Diluted Loss Per Share to non-GAAP Adjusted Diluted Earnings (Loss) Per Share:

Three Months Ended

Twelve Months Ended

May 31, 2021

May 31, 2020

May 31, 2021

May 31, 2020

(unaudited)

(unaudited)

Diluted loss per share

$

(0.51

)

$

(4.13

)

$

(0.82

)

$

(4.39

)

Amortization of intangibles

0.11

0.12

0.47

0.48

Goodwill impairment

-

4.17

-

4.16

Change in fair value of contingent consideration

0.01

(0.31

)

-

(0.30

)

Dosimetry inventory write-off (1)

-

0.03

-

0.03

Acquisition, restructuring and other items, net (2)

0.45

0.04

0.53

0.16

Write-off of deferred financing fees (3)

-

-

-

0.02

Tax effect of non-GAAP items (4)

(0.06

)

0.02

(0.13

)

(0.07

)

Adjusted diluted earnings (loss) per share

$

-

$

(0.06

)

$

0.05

$

0.09

Adjusted diluted sharecount (5)

38,525

38,072

39,110

38,105

(1) Write-off of raw materials and existing dosimetry inventory associated with OARtrac that was purchased pursuant to the Company's acquisition of RadiaDyne. These inventory items were deemed unmarketable absent subsequent design and development activities. (2) Includes costs related to merger and acquisition activities, restructuring, and unusual items, including asset impairments and write-offs, certain litigation, and other items. Fiscal year 2021 results include a $14.0 million write-off of OARtrac intangible assets. (3) Deferred financing fees related to the old credit agreement were written off during the first quarter of fiscal year 2020. (4) Adjustment to reflect the income tax provision on a non-GAAP basis has been calculated assuming no valuation allowance on the Company's U.S. deferred tax assets and an effective tax rate of 23% for the periods ended May 31, 2021 and May 31, 2020. (5) Diluted shares may differ for non-GAAP measures as compared to GAAP due to a GAAP loss.

ANGIODYNAMICS, INC. AND SUBSIDIARIESGAAP TO NON-GAAP RECONCILIATION(in thousands, except per share data)

Reconciliation of Net Loss to non-GAAP Adjusted Net Income (Loss): Three Months Ended Twelve Months Ended

May 31, May 31, 2020 May 31, May 31, 2020 2021 2021

(unaudited) (unaudited)



Net loss $ (19,468 ) $ (157,067 ) $ (31,548 ) $ (166,787 )



Amortization of 4,298 4,704 18,136 18,121 intangibles

Goodwill impairment - 158,578 - 158,578

Change in fair value ofcontingent 379 (11,647 ) 89 (11,531 )consideration

Dosimetry inventory - 958 - 958 write-off ^(1)

Acquisition,restructuring and other 17,175 1,528 20,232 6,014 items, net ^(2)

Write-off of deferred - - - 593 financing fees ^(3)

Tax effect of non-GAAP (2,451 ) 799 (5,057 ) (2,406 )items ^(4)

Adjusted net income $ (67 ) $ (2,147 ) $ 1,852 $ 3,540 (loss)



Reconciliation of Diluted Loss Per Share to non-GAAP Adjusted Diluted Earnings(Loss) Per Share:



Three Months Ended Twelve Months Ended

May 31, May 31, 2020 May 31, May 31, 2020 2021 2021

(unaudited) (unaudited)



Diluted loss per share $ (0.51 ) $ (4.13 ) $ (0.82 ) $ (4.39 )



Amortization of 0.11 0.12 0.47 0.48 intangibles

Goodwill impairment - 4.17 - 4.16

Change in fair value ofcontingent 0.01 (0.31 ) - (0.30 )consideration

Dosimetry inventory - 0.03 - 0.03 write-off ^(1)

Acquisition,restructuring and other 0.45 0.04 0.53 0.16 items, net ^(2)

Write-off of deferred - - - 0.02 financing fees ^(3)

Tax effect of non-GAAP (0.06 ) 0.02 (0.13 ) (0.07 )items ^(4)

Adjusted dilutedearnings (loss) per $ - $ (0.06 ) $ 0.05 $ 0.09 share



Adjusted diluted 38,525 38,072 39,110 38,105 sharecount ^(5)

(1) Write-off of raw materials and existing dosimetry inventory associated with OARtrac that was purchased pursuant to the Company's acquisition of RadiaDyne. These inventory items were deemed unmarketable absent subsequent design and development activities. (2) Includes costs related to merger and acquisition activities, restructuring, and unusual items, including asset impairments and write-offs, certain litigation, and other items. Fiscal year 2021 results include a $14.0 million write-off of OARtrac intangible assets. (3) Deferred financing fees related to the old credit agreement were written off during the first quarter of fiscal year 2020. (4) Adjustment to reflect the income tax provision on a non-GAAP basis has been calculated assuming no valuation allowance on the Company's U.S. deferred tax assets and an effective tax rate of 23% for the periods ended May 31, 2021 and May 31, 2020. (5) Diluted shares may differ for non-GAAP measures as compared to GAAP due to a GAAP loss.

ANGIODYNAMICS, INC. AND SUBSIDIARIESGAAP TO NON-GAAP RECONCILIATION (Continued)(in thousands, except per share data)



Reconciliation of Net Loss to Adjusted EBITDA:

Three Months Ended Twelve Months Ended

May 31, May 31, 2020 May 31, May 31, 2020 2021 2021

(unaudited) (unaudited)



Net loss $ (19,468 ) $ (157,067 ) $ (31,548 ) $ (166,787 )



Income tax expense (2,471 ) 158 (4,504 ) (1,348 )(benefit)

Interest expense, net 185 235 861 907

Depreciation and 6,485 6,216 25,761 23,650 amortization

Goodwill impairment - 158,578 - 158,578

Change in fair value ofcontingent 379 (11,647 ) 89 (11,531 )consideration

Stock based 2,227 1,594 8,625 7,592 compensation

Dosimetry inventory - 958 - 958 write-off ^(1)

Acquisition,restructuring and other 17,175 1,528 20,232 6,014 items, net ^(2)

Adjusted EBITDA $ 4,512 $ 553 $ 19,516 $ 18,033



Per diluted share:

Adjusted EBITDA $ 0.12 $ 0.01 $ 0.50 $ 0.47

(1) Write-off of raw materials and existing dosimetry inventory associated with OARtrac that was purchased pursuant to the Company's acquisition of RadiaDyne. These inventory items were deemed unmarketable absent subsequent design and development activities. (2) Includes costs related to merger and acquisition activities, restructuring, and unusual items, including asset impairments and write-offs, certain litigation, and other items. Fiscal year 2021 results include a $14.0 million write-off of OARtrac intangible assets.

ANGIODYNAMICS, INC. AND SUBSIDIARIESNET SALES BY PRODUCT CATEGORY AND BY GEOGRAPHY(in thousands)

Three Months Ended Twelve Months Ended

May 31, May 31, % Currency Constant May 31, May 31, % Currency Constant 2021 2020 Growth Impact Currency 2021 2020 Growth Impact Currency Growth Growth

(unaudited) (unaudited)

Net Sales byProduct Category

Endovascular $ 38,071 $ 22,090 72.3 % $ 135,079 $ 112,706 19.9 % Therapies

Vascular 24,462 23,714 3.2 % 101,310 94,299 7.4 % Access

Oncology 14,309 12,528 14.2 % 54,621 57,152 (4.4 ) %

$ 76,842 $ 58,332 31.7 % (0.8 )% 30.9 % $ 291,010 $ 264,157 10.2 % (0.4 )% 9.8 %





Net Sales by Geography

United States $ 63,597 $ 44,599 42.6 % 0.0 % 42.6 % $ 237,043 $ 207,980 14.0 % 0.0 % 14.0 %

International 13,245 13,733 (3.6 ) (3.6 )% (7.2 )% 53,967 56,177 (3.9 ) (1.9 )% (5.8 )% % %

$ 76,842 $ 58,332 31.7 % (0.8 )% 30.9 % $ 291,010 $ 264,157 10.2 % (0.4 )% 9.8 %



ANGIODYNAMICS, INC. AND SUBSIDIARIESCONSOLIDATED BALANCE SHEETS(in thousands)

May 31, 2021

May 31, 2020

(unaudited)

(audited)

Assets

Current assets:

Cash and cash equivalents

$

48,161

$

54,435

Accounts receivable, net

35,405

31,263

Inventories

48,614

59,905

Prepaid expenses and other

8,699

7,310

Total current assets

140,879

152,913

Property, plant and equipment, net

37,073

28,312

Other assets

13,193

15,338

Intangible assets, net

168,977

197,136

Goodwill

201,316

200,515

Total assets

$

561,438

$

594,214

Liabilities and stockholders' equity

Current liabilities:

Accounts payable

$

19,630

$

19,096

Accrued liabilities

35,459

29,380

Current portion of contingent consideration

-

836

Other current liabilities

2,495

2,133

Total current liabilities

57,584

51,445

Long-term debt, net of current portion

20,000

40,000

Deferred income taxes

19,955

24,057

Contingent consideration, net of current portion

15,741

14,811

Other long-term liabilities

8,701

9,029

Total liabilities

121,981

139,342

Stockholders' equity

439,457

454,872

Total Liabilities and Stockholders' Equity

$

561,438

$

594,214

ANGIODYNAMICS, INC. AND SUBSIDIARIESCONSOLIDATED BALANCE SHEETS(in thousands)

May 31, 2021 May 31, 2020

(unaudited) (audited)

Assets

Current assets:

Cash and cash equivalents $ 48,161 $ 54,435

Accounts receivable, net 35,405 31,263

Inventories 48,614 59,905

Prepaid expenses and other 8,699 7,310

Total current assets 140,879 152,913

Property, plant and equipment, net 37,073 28,312

Other assets 13,193 15,338

Intangible assets, net 168,977 197,136

Goodwill 201,316 200,515

Total assets $ 561,438 $ 594,214

Liabilities and stockholders' equity

Current liabilities:

Accounts payable $ 19,630 $ 19,096

Accrued liabilities 35,459 29,380

Current portion of contingent consideration - 836

Other current liabilities 2,495 2,133

Total current liabilities 57,584 51,445

Long-term debt, net of current portion 20,000 40,000

Deferred income taxes 19,955 24,057

Contingent consideration, net of current portion 15,741 14,811

Other long-term liabilities 8,701 9,029

Total liabilities 121,981 139,342

Stockholders' equity 439,457 454,872

Total Liabilities and Stockholders' Equity $ 561,438 $ 594,214

ANGIODYNAMICS, INC. AND SUBSIDIARIESCONSOLIDATED STATEMENTS OF CASH FLOWS(in thousands)

Three Months Ended

Twelve Months Ended

May 31, 2021

May 31, 2020

May 31, 2021

May 31, 2020

(unaudited)

(unaudited)

(audited)

Cash flows from operating activities:

Net loss

$

(19,468

)

$

(157,067

)

$

(31,548

)

$

(166,787

)

Adjustments to reconcile net loss to net cash provided by (used in) operating activities:

Depreciation and amortization

6,524

6,255

25,916

23,805

Non-cash lease expense

596

503

2,456

2,070

Goodwill impairment

-

158,578

-

158,578

Stock based compensation

2,227

1,594

8,625

7,592

Change in fair value of contingent consideration

379

(11,647

)

89

(11,531

)

Deferred income tax provision

(2,618

)

38

(4,805

)

(1,568

)

Change in accounts receivable allowances

176

243

207

429

Asset impairments and disposals

14,038

333

14,228

1,321

Other

2

16

(147

)

86

Changes in operating assets and liabilities, net of acquisitions:

Accounts receivable

(2,339

)

4,084

(4,162

)

11,918

Inventories

420

(4,809

)

11,539

(18,845

)

Prepaid expenses and other

5,640

3,223

(3,181

)

(6,155

)

Accounts payable, accrued and other liabilities

6,622

2,536

4,876

(15,467

)

Net cash provided by (used in) operating activities

12,199

3,880

24,093

(14,554

)

Cash flows from investing activities:

Additions to property, plant and equipment

(9,144

)

(1,479

)

(13,711

)

(7,235

)

Acquisition of intangibles

-

-

-

(350

)

Cash paid in acquisition

-

-

-

(55,760

)

Net cash used in investing activities

(9,144

)

(1,479

)

(13,711

)

(63,345

)

Cash flows from financing activities:

Repayment of long-term debt

(10,000

)

-

(20,000

)

(132,500

)

Proceeds from borrowings on long-term debt

-

25,000

-

40,000

Deferred financing costs on long-term debt

-

-

-

(775

)

Payment of acquisition related contingent consideration

-

-

-

(1,208

)

Proceeds (outlays) from exercise of stock options and employee stock purchase plan

555

(53

)

3,014

(759

)

Net cash provided by (used in) financing activities

(9,445

)

24,947

(16,986

)

(95,242

)

Effect of exchange rate changes on cash and cash equivalents

82

(73

)

330

(65

)

Increase (decrease) in cash and cash equivalents

(6,308

)

27,275

(6,274

)

(173,206

)

Cash and cash equivalents at beginning of period

54,469

27,160

54,435

227,641

Cash and cash equivalents at end of period

$

48,161

$

54,435

$

48,161

$

54,435

ANGIODYNAMICS, INC. AND SUBSIDIARIESCONSOLIDATED STATEMENTS OF CASH FLOWS(in thousands)

Three Months Ended Twelve Months Ended

May 31, May 31, 2020 May 31, May 31, 2020 2021 2021

(unaudited) (unaudited) (audited)

Cash flows from operating activities:

Net loss $ (19,468 ) $ (157,067 ) $ (31,548 ) $ (166,787 )

Adjustments toreconcile net loss tonet cash provided by (used in) operatingactivities:

Depreciation and 6,524 6,255 25,916 23,805 amortization

Non-cash lease expense 596 503 2,456 2,070

Goodwill impairment - 158,578 - 158,578

Stock based 2,227 1,594 8,625 7,592 compensation

Change in fair value ofcontingent 379 (11,647 ) 89 (11,531 )consideration

Deferred income tax (2,618 ) 38 (4,805 ) (1,568 )provision

Change in accounts 176 243 207 429 receivable allowances

Asset impairments and 14,038 333 14,228 1,321 disposals

Other 2 16 (147 ) 86

Changes in operatingassets and liabilities, net of acquisitions:

Accounts receivable (2,339 ) 4,084 (4,162 ) 11,918

Inventories 420 (4,809 ) 11,539 (18,845 )

Prepaid expenses and 5,640 3,223 (3,181 ) (6,155 )other

Accounts payable,accrued and other 6,622 2,536 4,876 (15,467 )liabilities

Net cash provided by(used in) operating 12,199 3,880 24,093 (14,554 )activities

Cash flows from investing activities:

Additions to property, (9,144 ) (1,479 ) (13,711 ) (7,235 )plant and equipment

Acquisition of - - - (350 )intangibles

Cash paid in - - - (55,760 )acquisition

Net cash used in (9,144 ) (1,479 ) (13,711 ) (63,345 )investing activities

Cash flows from financing activities:

Repayment of long-term (10,000 ) - (20,000 ) (132,500 )debt

Proceeds fromborrowings on long-term - 25,000 - 40,000 debt

Deferred financing - - - (775 )costs on long-term debt

Payment of acquisitionrelated contingent - - - (1,208 )consideration

Proceeds (outlays) fromexercise of stock 555 (53 ) 3,014 (759 )options and employeestock purchase plan

Net cash provided by(used in) financing (9,445 ) 24,947 (16,986 ) (95,242 )activities

Effect of exchange ratechanges on cash and 82 (73 ) 330 (65 )cash equivalents

Increase (decrease) incash and cash (6,308 ) 27,275 (6,274 ) (173,206 )equivalents

Cash and cashequivalents at 54,469 27,160 54,435 227,641 beginning of period

Cash and cashequivalents at end of $ 48,161 $ 54,435 $ 48,161 $ 54,435 period

ANGIODYNAMICS, INC. AND SUBSIDIARIESGAAP TO NON-GAAP RECONCILIATION(in thousands)

Reconciliation of Free Cash Flows:Three Months Ended

Twelve Months Ended

May 31, 2021

May 31, 2020

May 31, 2021

May 31, 2020

(unaudited)

(unaudited)

Net cash (used in) provided by operating activities

$

12,199

$

3,880

$

24,093

$

(14,554

)

Additions to property, plant and equipment

(9,144

)

(1,479

)

(13,711

)

(7,235

)

Free Cash Flow

$

3,055

$

2,401

$

10,382

$

(21,789

)

View source version on businesswire.com: https://www.businesswire.com/news/home/20210713005326/en/

CONTACT: Investor Contact: AngioDynamics, Inc. Stephen Trowbridge, Executive Vice President & CFO (518) 795-1408