ANGIODYNAMICS INC
For the period ended Nov 30, 2024. Filed Jan 8, 2025.
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A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Nov 30, 2024 · Filed Jan 8, 2025
ANGO$11.73-0.7%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2024-08-31; filed 2024-10-03.
0001628280-24-042176
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2024-11-30; filed 2025-01-08.
0001275187-25-000005
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 106 previous paragraphs and 120 current paragraphs.
40 unchanged; 52 reworded; 25 added; 12 removed; 2 previous and 3 current paragraphs rearranged.
Tables are not compared: 7 previous and 7 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (25)
Current report
On January 5, 2024, the Company announced a restructuring of its manufacturing footprint and a shift to an outsourced model (the "Plan"). This Plan will transfer all product manufacturing processes to third-party manufacturers. In the second quarter of fiscal year 2025, the Company announced a modification to the Plan to maintain a presence in Queensbury, NY for the manufacturing of select products, customer service, logistics, shipping, quality and regulatory operations. The restructuring activities associated with the modified Plan are still expected to be completed in the third quarter of fiscal year 2026. The modified Plan is still expected to generate $15.0 million in annual cost savings in fiscal year 2027.
Current report
•Revenue decreased by 7.9% to $72.8 million
Current report
•Net loss decreased by $18.3 million to $10.7 million
Current report
•Loss per share decreased by $0.46 to $0.26
Current report
Six months ended November 30, 2024:
Current report
•Revenue decreased by 11.0% to $140.3 million
Current report
•Med Tech growth of 16.2% and Med Device declined by 24.1%
Current report
•Gross profit increased 370 bps to 54.6%
Current report
•Med Tech gross profit remained consistent at 63.5% and Med Device gross profit increased 310 bps to 48.0%
Current report
•Net income decreased by $40.4 million to $23.5 million
Current report
•Loss per share decreased by $1.00 to $0.58
Current report
•Cash used in operations decreased by $4.9 million to $15.8 million
Current report
•Increased sales of the thrombus management platform of $3.6 million and $3.5 million compared to the same period in the prior year, respectively. This was driven by an increase in AngioVac and AlphaVac sales of $3.3 million and $3.2 million compared to the same periods in the prior year, respectively, and an increase in thrombolytic sales of $0.2 million for both periods compared to the same periods in the prior year; and
Current report
•Decreased sales of Core and Ports of $0.2 million and $0.2 million, respectively, which was partially offset by increased sales of Venous and Microwave products of $0.1 million and $0.1 million, respectively.
Current report
The change in sales for thesix months ended November 30, 2024 compared to the same period in the prior year, was primarily driven by:
Current report
•Production volume, other incentives and other costs, which negatively impacted gross profit by $1.6 million and $1.7 million, respectively;
Current report
•Inflationary costs on raw materials, labor shortages and freight costs negatively impacted gross profit by $1.2 million and $2.7 million, respectively; and
Current report
•Incremental depreciation and other expense on placement units of $0.7 million and $1.3 million, respectively.
Current report
•Production volume, other incentives and other costs, which negatively impacted gross profit by $0.7 million and $0.4 million, respectively;
Current report
•Inflationary costs on raw materials, labor shortages and freight costs negatively impacted gross profit by $0.2 million and $0.7 million, respectively; and
Current report
•Price and product mix, which positively impacted gross profit by $1.4 million and $2.9 million, respectively;
Current report
•Sales volume, production volume, other incentives and other costs, which negatively impacted gross profit by $1.4 million and $2.9 million, respectively;
Current report
R&D expense decreased $2.2 million and $3.9 million for the three and six months ended November 30, 2024 compared to the same period in the prior year, respectively. The change for both periods was primarily driven by:
Current report
•Compensation and benefits expenses, which increased $1.8 million and $1.0 million, respectively; and
Current report
•Mergers and acquisition expense, which increased $0.5 million for both periods;
Removed paragraphs (12)
Previous report
•Revenue decreased by 14.2% to $67.5 million
Previous report
•Gross profit increased 350 bps to 54.4%
Previous report
•Net loss increased by $58.7 million to $12.8 million
Previous report
•Loss per share increased by $1.46 to $0.31
Previous report
•Decreased sales of the thrombus management platform of $0.1 million, which was driven by a decrease in AngioVac sales of $0.5 million and was partially offset by an increase in AlphaVac sales of $0.4 million; and
Previous report
•Production volume and other incentives, which negatively impacted gross profit by $0.4 million. This was partially offset by production volume related to our TSA, which positively impacted gross profit by $0.3 million;
Previous report
•Inflationary costs on raw materials, labor shortages and freight costs negatively impacted gross profit by $0.9 million; and
Previous report
•Incremental depreciation and other expense on placement units of $0.5 million.
Previous report
•Inflationary costs on raw materials, labor shortages and freight costs negatively impacted gross profit by $0.4 million; and
Previous report
•Production volume and other incentives, which negatively impacted gross profit by $0.4 million. This was partially offset by production volume related to our TSA, which positively impacted gross profit by $0.3 million;
Previous report
•Inflationary costs on raw materials, labor shortages and freight costs negatively impacted gross profit by $0.5 million; and
Previous report
R&D expense decreased $1.7 million for thethree months ended August 31, 2024 compared to the same period in the prior year. The change from the prior year was primarily driven by:
Reworded paragraphs (52)
Previous wording
On July 16, 2024, the Board of Directors approved a share repurchase program (the "Repurchase Program") under which they authorized the Company the option to repurchase up to $15.0 million of its outstanding common stock. The timing and amount of any share repurchases under the authorization will be determined by management at its discretion and based on market conditions and other considerations. During the first quarter of fiscal year 2024, the Company repurchased 72,141 shares of common stock in the open market at an aggregate cost of $0.5 million under the Repurchase Program. As of August 31, 2024, $14.5 million remained available for repurchase under the Repurchase Program.
Current wording
On July 16, 2024, the Board of Directors approved a share repurchase program (the "Repurchase Program") under which they authorized the Company the option to repurchase up to $15.0 million of its outstanding common stock. The timing and amount of any share repurchases under the authorization will be determined by management within certain parameters and based on market conditions and other considerations. During the first quarter of fiscal year 2025, the Company repurchased 72,141 shares of common stock in the open market at an aggregate cost of $0.5 million under the Repurchase Program. During the second quarter of fiscal year 2025, the Company repurchased 171,706 shares of common stock in the open market at an aggregate cost of $1.1 million under the Repurchase Program. As of November 30, 2024, $13.3 million remained available for repurchase under the Repurchase Program.
Previous wording
In evaluating the operating performance of our business, management focuses on company-wide and segment revenue and gross margin and company-wide operating income, earnings per share and cash flow from operations. A summary of these key financial metrics for the three months ended August 31, 2024 compared to the three months ended August 31, 2023 are as follows:
Current wording
In evaluating the operating performance of our business, management focuses on company-wide and segment revenue and gross margin and company-wide operating income, earnings per share and cash flow from operations. A summary of these key financial metrics for the three and six months ended November 30, 2024 compared to the three and six months ended November 30, 2023 are as follows:
Previous wording
•Med Tech growth of 8.2% and Med Device decrease of 25.2%
Current wording
•Med Tech growth of 24.4% and Med Device decrease of 23.1%
Previous wording
•Med Tech gross profit decreased 140 bps to 63.3% and Med Device gross profit increased 390 bps to 48.1%
Current wording
•Med Tech gross profit increased 130 bps to 63.7% and Med Device gross profit increased 240 bps to 47.9%
Previous wording
For the three months ended August 31, 2024, the decrease in revenue is partially due to the sale of the PICCs, Midline, dialysis and BioSentry businesses, along with the discontinuation of the RadioFrequency Ablation and Syntrax product lines, the total of which impacted sales by $12.0 million compared to the three months ended August 31, 2023. Our Med Tech revenue, comprised of Auryon, the thrombus management platform and NanoKnife, grew 8.2% in the first quarter of fiscal year 2025. The growth in Auryon was partially offset by softness in the NanoKnife and thrombus management platforms. Our Med Device revenue declined by 25.2% in the first quarter of fiscal year 2025 driven mainly by the sale of the PICCs, Midlines, dialysis and BioSentry businesses along with the discontinuation of the RadioFrequency Ablation product lines.
Current wording
For the three and six months ended November 30, 2024, the decrease in revenue is partially due to the sale of the PICCs, Midline, dialysis and BioSentry businesses, along with the discontinuation of the RadioFrequency Ablation and Syntrax product lines, the total of which impacted sales by $12.4 million and $24.3 million compared to the same periods in the prior year, respectively. Our Med Tech revenue, comprised of Auryon, the thrombus management platform and NanoKnife, grew 24.4% in the second quarter of fiscal year 2025. Our Med Device revenue declined by 23.1% in the second quarter of fiscal year 2025 driven mainly by the sale of the PICCs, Midlines, dialysis and BioSentry businesses along with the discontinuation of the RadioFrequency Ablation product lines.
Previous wording
For the three months ended August 31, 2024, the Company reported net loss of $12.8 million, or diluted loss per share of $0.31, on net sales of $67.5 million, compared with a net income of $45.9 million, or diluted earnings per share of $1.15, on net sales of $78.7 million during the same quarter of the prior year.
Current wording
For the three months ended November 30, 2024, the Company reported net loss of $10.7 million, or diluted loss per share of $0.26, on net sales of $72.8 million, compared with a net loss of $29.0 million, or diluted loss per share of $0.72, on net sales of $79.1 million during the same quarter of the prior year. For the six months ended November 30, 2024, the Company reported net loss of $23.5 million, or diluted loss per share of $0.58, on net sales of $140.3 million, compared with a net income of $16.8 million, or diluted earnings per share of $0.42, on net sales of $157.8 million during the same quarter of the prior year.
Previous wording
For the three months ended August 31, 2024, net sales decreased $11.2 million to $67.5 million compared to the same period in the prior year. At August 31, 2024, the Company had a backlog of $1.1 million.
Current wording
For the three months ended November 30, 2024, net sales decreased $6.2 million to $72.8 million compared to the same period in the prior year. For the six months ended November 30, 2024, net sales decreased $17.4 million to $140.3 million compared to the same period in the prior year. At November 30, 2024, the Company had a sales order backlog of $0.7 million.
Previous wording
The Med Tech segment net sales increased $2.1 million for the three months ended August 31, 2024 compared to the same period in the prior year. The change in sales from the prior year was primarily driven by:
Current wording
The Med Tech segment net sales increased $6.2 million and $8.3 million for the three and six months ended November 30, 2024 compared to the same period in the prior year, respectively. The change in sales for both periods was primarily driven by:
Previous wording
•Increased Auryon sales of $2.7 million;
Current wording
•Increased Auryon sales of $2.5 million and $5.2 million compared to the same period in the prior year, respectively;
Previous wording
•Decreased sales of Syntrax of $0.1 million due to the discontinuation of this product line as of February 29, 2024;
Current wording
•Decreased sales of Syntrax of $0.1 million and $0.3 million, respectively, due to the discontinuation of this product line as of February 29, 2024;
Previous wording
•Decreased NanoKnife sales of $0.4 million, which was driven by decreased capital and disposable sales.
Current wording
•Increased NanoKnife sales of $0.3 million for the three months ended November 30, 2024, compared to the same period in the prior year, which was driven by increased disposable sales offset by decreased capital sales. Decreased NanoKnife sales of $0.1 million for the six months ended November 30, 2024, compared to the same period in the prior year, which was driven by decreased capital sales partially offset by increased disposable sales.
Previous wording
The Med Device segment net sales decreased $13.3 million for the three months ended August 31, 2024 compared to the same period in the prior year. The backlog, which primarily impacted sales of Core products, was$1.1 million.
Current wording
The Med Device segment net sales decreased $12.4 million and $25.7 million for the three and six months ended November 30, 2024 compared to the same period in the prior year, respectively. The backlog, which primarily impacted sales of Core products, was$0.7 million.
Previous wording
•Decreased sales of PICCs and Midline products of $10.2 million, which was due to the divestiture of these businesses on February 15, 2024;
Current wording
•Decreased sales of PICCs and Midline products of $11.4 million, which was due to the divestiture of these businesses on February 15, 2024;
Previous wording
•Decreased sales of dialysis and BioSentry products of $0.8 million, which was due to the divestiture of these businesses on June 8, 2023;
Current wording
•Decreased sales of dialysis and BioSentry products of $0.7 million, which was due to the divestiture of these businesses on June 8, 2023;
Previous wording
•Decreased sales of Microwave, Core and Oncology products of $1.5 million, $0.2 million and $0.2 million, respectively, which was partially offset by increased sales of Ports of $0.4 million.
Current wording
•Decreased sales of Microwave, Core and Oncology products of $1.4 million, $0.4 million and $0.3 million, respectively, which was partially offset by increased sales of Venous and Ports of $0.2 million and $0.2 million, respectively.
Previous wording
Total Company gross profit decreased by $3.3 million for thethree months ended August 31, 2024 compared to the same period in the prior year. The change from the prior year was primarily driven by:
Current wording
Total Company gross profit decreased by $0.4 million and $3.7 million for the three and six months ended November 30, 2024 compared to the same period in the prior year, respectively. The change for both periods was primarily driven by:
Previous wording
•The sale of the PICCs, Midline, dialysis and BioSentry businesses contributed $3.4 million of gross profit in the prior year;
Current wording
•The sale of the PICCs, Midline, dialysis and BioSentry businesses contributed $3.6 million and $7.0 million of gross profit, respectively;
Previous wording
•Sales volume, price and product mix, which positively impacted gross profit by $1.5 million;
Current wording
•Sales volume, price and product mix, which positively impacted gross profit by $6.7 million and $9.1 million, respectively;
Previous wording
The Med Tech segment gross profit increased by $1.0 million for thethree months ended August 31, 2024 compared to the same period in the prior year. The change from the prior year was primarily driven by:
Current wording
The Med Tech segment gross profit increased by $4.3 million and $5.3 million for the three and six months ended November 30, 2024 compared to the same period in the prior year, respectively. The change for both periods was primarily driven by:
Previous wording
•Sales volume, price and product mix, which positively impacted gross profit by $1.8 million;
Current wording
•Sales volume, price and product mix, which positively impacted gross profit by $5.9 million and $7.6 million, respectively;
Previous wording
•Incremental depreciation and other expense on placement units of $0.6 million.
Current wording
•Incremental depreciation and other expense on placement units of $0.6 million and $1.2 million, respectively.
Previous wording
The Med Device segment gross profit decreased by $4.3 million for thethree months ended August 31, 2024 compared to the same period in the prior year. The change from the prior year was primarily driven by:
Current wording
The Med Device segment gross profit decreased by $4.7 million and $9.0 million for the three and six months ended November 30, 2024 compared to the same period in the prior year, respectively. The change for both periods was primarily driven by:
Previous wording
•The sale of the PICCs, Midline, dialysis and BioSentry businesses contributed $3.4 million of gross profit in the prior year;
Current wording
•The sale of the PICCs, Midline, dialysis and BioSentry businesses contributed $3.6 million and $7.0 million of gross profit, respectively;
Previous wording
•Sales volume, which negatively impacted gross profit by $1.0 million;
Current wording
•Inflationary costs on raw materials, labor shortages and freight costs negatively impacted gross profit by $1.0 million and $2.0 million, respectively; and
Previous wording
•Incremental depreciation and other expense on placement units of $0.1 million.
Current wording
•Incremental depreciation and other expense on placement units of $0.1 million and $0.1 million, respectively.
Previous wording
•The timing of certain projects and clinical spend associated with the ongoing clinical trials, which decreased R&D expense by $1.3 million; and
Current wording
•The timing of certain projects and clinical spend associated with the ongoing clinical trials, which decreased R&D expense by $2.8 million and $4.2 million, respectively; and
Previous wording
•Compensation and benefits expenses, which decreased $0.8 million; and
Current wording
•Compensation and benefits expenses, which increased $0.5 million and $0.2 million, respectively.
Previous wording
S&M expense decreased $1.8 million for the three months ending August 31, 2024 compared to the same period in the prior year. The change from the prior year was primarily driven by:
Current wording
S&M expense increased $0.1 million and decreased $1.6 million for the three and six months ending November 30, 2024 compared to the same period in the prior year, respectively. The change for both periods was primarily driven by:
Previous wording
•Compensation and benefits expense, which decreased by $1.7 million; and
Current wording
•Compensation and benefits expense, which decreased by $0.8 million and $2.5 million, respectively; and
Previous wording
•Travel and other selling expenses, which decreased $0.2 million and was partially offset by trade show expenses, which increased $0.4 million.
Current wording
•Travel and other selling expenses, which increased $0.6 million and $0.3 million, respectively, and trade show expenses, which increased $0.2 million and $0.4 million, respectively.
Previous wording
G&A expense increased $0.1 million for the three months ended August 31, 2024 compared to the same period in the prior year. The change from the prior year was primarily driven by:
Current wording
G&A expense increased $1.1 million and $1.2 million for the three and six months ended November 30, 2024 compared to the same period in the prior year, respectively. The change for both periods was primarily driven by:
Previous wording
•Other outside consultant spend for legal and IT, which increased $0.9 million.
Current wording
•Other outside consultant spend for legal and IT, which increased $0.4 million and $1.3 million, respectively, which was partially offset by a decrease in depreciation and other corporate expenses of $1.1 million for both periods.
Previous wording
•Amortization expense decreased $1.1 million for the three months ended August 31, 2024 compared to the same period in the prior year, due to the intangible assets that were included in the sale of the dialysis, BioSentry, PICCs and Midlines businesses and the abandonment of the Syntrax product line.
Current wording
•Amortization expense decreased $1.0 million and $2.1 million for the three and six months ended November 30, 2024 compared to the same period in the prior year, respectively, due to the intangible assets that were included in the sale of the dialysis, BioSentry, PICCs and Midlines businesses and the abandonment of the Syntrax product line.
Previous wording
•The change in the fair value for the three months ended August 31, 2024 is related to the Eximo contingent consideration.
Current wording
•The change in the fair value for the three and six months ended November 30, 2024 is related to the Eximo contingent consideration.
Previous wording
Acquisition, restructuring and other items, net, increased by $1.1 million for the three months ended August 31, 2024, compared to the same period in the prior year. The change from the prior year was primarily driven by:
Current wording
Acquisition, restructuring and other items, net, decreased by $0.3 million and increased $0.8 million for the three and six months ended November 30, 2024, compared to the same period in the prior year, respectively. The change for both periods was primarily driven by:
Previous wording
•Legal expense, related to litigation that is outside of the normal course of business, which decreased $1.3 million;
Current wording
•Legal expense, related to litigation that is outside of the normal course of business, which decreased $5.3 million and $6.7 million, respectively;
Previous wording
•Plant closure expense, related to the restructuring of our manufacturing footprint which was announced on January 5, 2024, which increased $3.6 million;
Current wording
•Plant closure expense, related to the restructuring of our manufacturing footprint which was announced on January 5, 2024, which increased $5.1 million and $8.7 million, respectively;
Previous wording
•Transaction services agreements that were entered into as a result of the sale of the PICCs, Midline, dialysis and BioSentry businesses. The increase in the fees invoiced was $0.4 million; and
Current wording
•Transaction services agreements that were entered into as a result of the sale of the PICCs, Midline, dialysis and BioSentry businesses. The increase in the fees invoiced was $0.3 million and $0.6 million, respectively; and
Previous wording
•Manufacturing relocation expense related to the move of certain manufacturing lines from Queensbury, New York to a third party, which decreased $0.6 million.
Current wording
•Manufacturing relocation expense related to the move of certain manufacturing lines from Queensbury, New York to a third party, which decreased $0.7 million and $1.3 million, respectively.
Previous wording
Other expense, net - Other expenses include interest expense, foreign currency impacts and bank fees.
Current wording
Other income, net - Other expenses include interest expense, foreign currency impacts and bank fees.
Showing the first 40 of 52 pairs. Open the source sections for the rest.
Rearranged current paragraphs (3)
Current report — wording carried from elsewhere
•Gross profit increased 390 bps to 54.8%
Current report — wording carried from elsewhere
•Decreased sales of PICCs and Midline products of $21.6 million, which was due to the divestiture of these businesses on February 15, 2024;
Current report — wording carried from elsewhere
•Decreased sales of RadioFrequency Ablation of $1.8 million due to the discontinuation of this product line as of February 29, 2024; and
Rearranged previous paragraphs (2)
Previous report — wording carried elsewhere
•Price and product mix, which positively impacted gross profit by $0.8 million;
Previous report — wording carried elsewhere
•Compensation and benefits expenses, which decreased $0.4 million.