ANGIODYNAMICS INC
For the period ended Feb 29, 2024. Filed Apr 9, 2024.
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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.
Feb 29, 2024 · Filed Apr 9, 2024
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 2023-11-30; filed 2024-01-08.
0001628280-24-000857
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2024-02-29; filed 2024-04-09.
0001628280-24-015487
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 121 previous paragraphs and 135 current paragraphs.
45 unchanged; 54 reworded; 33 added; 21 removed; 1 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 (33)
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. The restructuring activities associated with the Plan are expected to be completed in the third quarter of fiscal year 2026 and will allow the Company to more effectively compete in chosen markets and fundamentally change its corporate gross margin profile.
Current report
In the third quarter of fiscal year 2024, the Company concluded that the sustained decline in our stock price was a triggering event for the Med Tech reporting unit. The Company utilized the income approach to determine the fair value of the remaining Med Tech reporting unit. Based on the results of this evaluation, the Company recorded a goodwill impairment charge of $159.5 million for the quarter ended February 29, 2024 to write down the carrying value of the Med Tech reporting unit to fair value.
Current report
On March 31, 2024, the Company and BD entered into a Settlement Agreement as described in Note 14 "Commitments and Contingencies" set forth in the Notes to our consolidated financial statements in this Quarterly Report on Form 10 -Q. The Company will make a one-time lump sum payment to BD in the amount of $7.0 million, $3.0 million of which will be payable within 5 business days, and the remainder of which will be payable in installments over the next 12 months. The Company will also make six minimum annual payments to BD of $2.5 million through February, 2029, and potential additional payments if six percent (6%) of annual net sales of AngioDynamics’ port products exceed the minimum payment. The parties will participate in the pending appeal before the Federal Circuit of the case titled C.R. Bard, Inc. and Bard Peripheral Vascular, Inc. v. AngioDynamics, Inc. (C.A. 15-00218–JFB; and CAFC appeal No. 23-2056) and a contingent payment of $3.0 million will be due from AngioDynamics to BD if the Federal Circuit reverses or vacates the District Court’s findings of invalidity with respect to the patent claims at issue in the case. Neither party admitted any liability and the agreement contains mutual covenants not to sue and releases. The agreement contains mutual covenants not to sue and releases. As of February 29, 2024, the present value of the lump sum and minimum annual payments of $19.3 million was recorded in "Acquisition, restructuring and other items, net" on theaccompanying consolidated statements of operations and a long-term asset of$1.3 million, other current liabilities of $8.5 million and other long-term liabilities of $12.0 million was recorded on the consolidated balance sheets.
Current report
•Revenue decreased by 6.9% to $75.2 million
Current report
•Gross profit decreased 250 bps to 47.7%
Current report
Nine months ended February 29, 2024:
Current report
•Revenue decreased by 6.0% to $232.9 million
Current report
•Gross profit decreased 170 bps to 49.9%
Current report
•Net loss increased by $139.9 million to $170.9 million
Current report
•Increased Auryon sales of $1.5 million and $5.0 million compared to the three and nine months ended February 28, 2023, respectively;
Current report
The change in sales for the three months ended February 29, 2024 compared to the three months ended February 28, 2023, respectively, was primarily driven by:
Current report
•Decreased sales of PICCs and Midline products of $1.6 million and $0.5 million, respectively, which was due to the divestiture of these businesses on February 15, 2024;
Current report
•Decreased sales of RadioFrequency Ablation and Syntrax of $0.9 million and $0.1 million, respectively. These products were discontinued as of February 29, 2024; and
Current report
The change in sales for the nine months ended February 29, 2024 compared to the nine months ended February 28, 2023, respectively, was primarily driven by:
Current report
•Decreased sales of PICCs and Midline products of $2.3 million and $0.2 million, respectively, which was due to the divestiture of these businesses on February 15, 2024;
Current report
•Decreased sales of RadioFrequency Ablation and Syntrax of $1.5 million and $0.1 million, respectively. These products were discontinued as of February 29, 2024; and
Current report
•Increased sales of Core, Ports, Venous and Microwave of $1.6 million, $2.4 million, $1.7 million and $0.3 million, respectively. This increase was partially offset by decreased sales of Other VA and Oncology products of $0.5 million.
Current report
•The sale of the PICCs, Midline, dialysis and BioSentry businesses, which negatively impacted gross profit by $5.4 million and $15.3 million, respectively;
Current report
•Sales volume, which positively impacted gross profit by $2.5 million and $6.5 million, respectively;
Current report
•Price, which positively impacted gross profit by $1.1 million and $1.1 million, respectively;
Current report
•Production volume and other costs, which negatively impacted gross profit by $1.9 million and $0.7 million, respectively and is inclusive of a $1.0 million recall reserve that was recorded in the third quarter of fiscal year 2024;
Current report
•Sales volume, which positively impacted gross profit by $1.6 million and $4.4 million, respectively;
Current report
•The sale of the PICCs, Midline, dialysis and BioSentry businesses, which negatively impacted gross profit by $5.4 million and $15.3 million, respectively;
Current report
•Sales volume, which positively impacted gross profit by $1.0 million and $2.3 million, respectively;
Current report
•Sales mix, which negatively impacted gross profit by $0.4 million and $0.9 million, respectively;
Current report
•Inflationary costs on raw materials, labor shortages and freight costs had a consistent impact on gross profit for the three months ended February 29, 2024 compared to the three months ended February 28, 2023, and which negatively impacted gross profit by $0.9 million for the nine months ended February 29, 2024 compared to the nine months ended February 28, 2023; and
Current report
•Incremental depreciation on placement units remained consistent for the three months ended February 29, 2024 compared to the same period in the prior year, and negatively impacted gross profit by $0.2 million for the nine months ended February 29, 2024 compared to the same period in the prior year.
Current report
R&D expense increased $1.3 million and $2.8 million for the three and nine months ended February 29, 2024 compared to the three and nine months ended February 28, 2023, respectively. The change for both periods was primarily driven by:
Current report
G&A expense increased $1.7 million and $0.9 million for the three and nine months ended February 29, 2024 compared to the three and nine months ended February 28, 2023, respectively. The change for both periods was primarily driven by:
Current report
Goodwill impairment - Represents the impairment charge taken on goodwill.
Current report
•The Company recorded a non-cash goodwill impairment charge of $159.5 million for the three and nine months ended February 29, 2024 as the fair value of the Med Tech reporting unit was less than its carrying value.
Current report
•Plant closure expense, related to the restructuring of our manufacturing footprint which was announced on January 5, 2024, which increased $5.4 million and $6.1 million, respectively;
Current report
•An impairment of $3.4 million on the Syntrax product technology intangible asset and an inventory write-off of $2.9 million was taken in the third quarter of fiscal year 2024 related to the abandonment of the Syntrax and RF product lines;
Removed paragraphs (21)
Previous report
•Revenue decreased by 7.4% to $79.1 million
Previous report
•Gross profit decreased 190 bps to 50.9%
Previous report
Six months ended November 30, 2023:
Previous report
•Revenue decreased by 5.5% to $157.8 million
Previous report
•Gross profit decreased 140 bps to 50.9%
Previous report
•Net income increased by $38.3 million to $16.8 million
Previous report
•Increased Auryon sales of $1.3 million and $3.6 million compared to the same periods in the prior year, respectively;
Previous report
•Decreased sales of the thrombus management platform of $0.6 million and $1.3 million compared to the same period in the prior year, respectively. This was driven by a decrease in AngioVac sales of $0.6 million and $1.2 million compared to the same periods in the prior year, respectively, partially offset by increased AlphaVac sales of $0.3 million and $0.3 million compared to the same periods in the prior year, respectively; and
Previous report
The change in sales for the three months ended November 30, 2023 compared to the same period in the prior year was primarily driven by:
Previous report
The change in sales for the six months ended November 30, 2023 compared to the same period in the prior year was primarily driven by:
Previous report
•Decreased sales of PICCs and Other Oncology and Vascular Access sales of $0.7 million and $0.7 million, respectively. These decreases were partially offset by increased sales of Core, Midlines, Ports and Microwave products of $0.3 million, $0.3 million, $2.0 million and $0.7 million, respectively.
Previous report
•The sale of the dialysis and BioSentry businesses, which negatively impacted gross profit by $5.3 million and $9.4 million, respectively;
Previous report
•Sales volume, which positively impacted gross profit by $1.5 million and $3.7 million, respectively;
Previous report
•Sales mix, which negatively impacted gross profit by $0.5 million and $1.0 million, respectively;
Previous report
•Sales mix, which negatively impacted gross profit by $0.5 million and $0.9 million, respectively; and
Previous report
•The sale of the dialysis and BioSentry businesses, which negatively impacted gross profit by $5.3 million and $9.4 million, respectively;
Previous report
•Production volume and price, which negatively impacted gross profit by $0.1 million for the three months ended November 30, 2023 compared to the same period in the prior year, and which positively impacted gross profit by $0.1 million for thesix months ended November 30, 2023 compared to the same period in the prior year;
Previous report
•Sales mix, which negatively impacted gross profit by $0.1 million and $0.8 million, respectively;
Previous report
R&D expense increased $1.8 million and $1.4 million for the three and six months ended November 30, 2023 compared to the same period in the prior year, respectively. The change for both periods was primarily driven by:
Previous report
G&A expense decreased $1.5 million and $0.8 million for the three and six months ended November 30, 2023 compared to the same period in the prior year. The change for both periods was primarily driven by:
Previous report
•Compensation and benefits expenses, which decreased $1.4 million and $0.5 million, respectively. The decrease for thesix months ended November 30, 2023 was partially offset by a change in the vesting of equity grants to members of the Board from a one-year vest period to immediate vesting which resulted in additional expense of $1.1 million in the first quarter of fiscal year 2024; and
Reworded paragraphs (54)
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 and six months ended November 30, 2023 compared to the three and six months ended November 30, 2022 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 nine months ended February 29, 2024 compared to the three and nine months ended February 28, 2023 are as follows:
Previous wording
•Med Tech growth of 3.5% and Med Device declined by 11.8%
Current wording
•Med Tech growth of 13.0% and Med Device declined by 14.7%
Previous wording
•Med Tech gross profit decreased 130 bps to 62.4% and Med Device gross profit decreased 290 bps to 45.5%
Current wording
•Med Tech gross profit decreased 320 bps to 61.4% and Med Device gross profit decreased 400 bps to 40.5%
Previous wording
•Net loss increased by $20.6 million to $29.0 million
Current wording
•Net loss increased by $178.3 million to $187.7 million
Previous wording
•Loss per share increased by $0.51 to $0.72
Current wording
•Loss per share increased by $4.43 to $4.67
Previous wording
•Med Tech growth of 8.3% and Med Device declined by 11.0%
Current wording
•Med Tech growth of 9.8% and Med Device declined by 12.2%
Previous wording
•Med Tech gross profit was consistent at 63.5% and Med Device gross profit decreased 300 bps to 44.9%
Current wording
•Med Tech gross profit decreased 100 bps 62.8% and Med Device gross profit decreased 330 bps to 43.5%
Previous wording
•Earnings per share increased by $0.97 to $0.42
Current wording
•Loss per share increased by $3.47 to $4.26
Previous wording
•Cash used in operations increased by $3.4 million to $20.6 million
Current wording
•Cash used in operations increased by $17.3 million to $33.2 million
Previous wording
For the three and six months ended November 30, 2023, the decrease in revenue is due to the sale of the dialysis and BioSentry businesses, which closed on June 8, 2023 and impacted sales by $8.4 million and $16.2 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 3.5% in the second quarter of fiscal year 2024. The growth in Auryon and NanoKnife was partially offset by continued softness in the thrombus management platform. Our Med Device revenue declined by 11.8% in the second quarter of fiscal year 2024 driven mainly by the sale of the dialysis and BioSentry businesses.
Current wording
For the three and nine months ended February 29, 2024, the decrease in revenue is partially due to the sale of the PICCs, Midline, dialysis and BioSentry businesses which impacted sales by $9.6 million and $25.6 million compared to the three and nine months ended February 28, 2023, respectively. Our Med Tech revenue, comprised of Auryon, the thrombus management platform and NanoKnife, grew 13.0% in the third quarter of fiscal year 2024. The growth in Auryon and NanoKnife was partially offset by continued softness in the thrombus management platform. Our Med Device revenue declined by 14.7% in the third quarter of fiscal year 2024 driven mainly by the sale of the PICCs, Midlines, dialysis and BioSentry businesses.
Previous wording
For the three months ended November 30, 2023, the Company reported net loss of $29.0 million, or diluted loss per share of $0.72, on net sales of $79.1 million, compared with a net loss of $8.5 million, or a loss of $0.21 per diluted share, on net sales of $85.4 million during the same quarter of the prior year. For the six months ended November 30, 2023, the Company reported net income of $16.8 million, or diluted earnings per share of $0.42, on net sales of $157.8 million, compared with a net loss of $21.5 million, or a loss of $0.55 per diluted share, on net sales of $167.0 million during the same quarter of the prior year.
Current wording
For the three months ended February 29, 2024, the Company reported net loss of $187.7 million, or diluted loss per share of $4.67, on net sales of $75.2 million, compared with a net loss of $9.5 million, or a loss of $0.24 per diluted share, on net sales of $80.7 million during the same quarter of the prior year. For the nine months ended February 29, 2024, the Company reported net loss of $170.9 million, or diluted loss per share of $4.26, on net sales of $232.9 million, compared with a net loss of $31.0 million, or a loss of $0.79 per diluted share, on net sales of $247.7 million during the same quarter of the prior year.
Previous wording
For the three months ended November 30, 2023, net sales decreased $6.4 million to $79.1 million compared to the same period in the prior year. For the six months ended November 30, 2023, net sales decreased $9.2 million to $157.8 million compared to the same period in the prior year. At November 30, 2023, the Company had a backlog of $2.0 million, a decrease of $1.3 million from August 31, 2023.
Current wording
For the three months ended February 29, 2024, net sales decreased $5.5 million to $75.2 million compared to the three months ended February 28, 2023. For the nine months ended February 29, 2024, net sales decreased $14.7 million to $232.9 million compared to the nine months ended February 28, 2023. At February 29, 2024, the Company had a backlog of $1.2 million, a decrease of $0.9 million from November 30, 2023.
Previous wording
The Med Tech segment net sales increased $0.9 million and $3.9 million for the three and six months ended November 30, 2023 compared to the same period in the prior year, respectively. The change in sales for both periods was primarily driven by:
Current wording
The Med Tech segment net sales increased $3.0 million and $6.9 million for the three and nine months ended February 29, 2024 compared to the three and nine months ended February 28, 2023, respectively. The change in sales for both periods was primarily driven by:
Previous wording
•Incremental depreciation on placement units of $0.3 million and $0.6 million, respectively.
Current wording
•Decreased sales of the thrombus management platform of $0.5 million and $1.8 million compared to the three and nine months ended February 28, 2023, respectively. This was driven by AngioVac sales remaining consistent and decreasing $1.2 million compared to the three and nine months ended February 28, 2023, respectively. This was also driven by AlphaVac sales decreasing $0.9 million and $0.6 million, respectively; and
Previous wording
•Increased NanoKnife sales of $0.2 million and $1.6 million compared to the same periods in the prior year, respectively, which was driven by increased capital sales for the three months ended November 30, 2023 and increased capital and disposable sales for the six months ended November 30, 2023.
Current wording
•Increased NanoKnife sales of $1.9 million and $3.5 million compared to the three and nine months ended February 28, 2023, respectively, which was driven by increased capital and disposable sales for the three andnine months ended February 29, 2024.
Previous wording
The Med Device segment net sales decreased $7.2 million and $13.1 million for the three and six months ended November 30, 2023 compared to the same period in the prior year, respectively. The backlog, which primarily impacted sales of Core and Vascular Access products, was$2.0 million, a decrease of $1.3 million from August 31, 2023.
Current wording
The Med Device segment net sales decreased $8.5 million and $21.6 million for the three and nine months ended February 29, 2024 compared to the three and nine months ended February 28, 2023, respectively. The backlog, which primarily impacted sales of Core and Vascular Access products, was$1.2 million, a decrease of $0.9 million from November 30, 2023.
Previous wording
•Decreased sales of dialysis and BioSentry products of $6.7 million and $1.8 million, respectively, which was due to the divestiture of these businesses on June 8, 2023; and
Current wording
•Decreased sales of dialysis and BioSentry products of $5.7 million and $1.8 million, respectively, which was due to the divestiture of these businesses on June 8, 2023;
Previous wording
•Decreased sales of Microwave and Other Oncology and Vascular Access sales of $0.4 million and $0.1 million, respectively. These decreases were partially offset by increased sales of Core, PICCS and Ports products of $0.4 million, $0.1 million and $0.4 million, respectively.
Current wording
•Increased sales of Core, Venous and Ports of $1.2 million, $1.2 million and $0.4 million, respectively. This increase was partially offset by decreased sales of Microwave and Other VA and Oncology products of $0.4 million and $0.5 million, respectively.
Previous wording
•Decreased sales of dialysis and BioSentry products of $12.6 million and $3.6 million, respectively, which was due to the divestiture of these businesses on June 8, 2023; and
Current wording
•Decreased sales of dialysis and BioSentry products of $17.9 million and $5.2 million, respectively, which was due to the divestiture of these businesses on June 8, 2023;
Previous wording
Total Company gross profit decreased by $4.8 million and $7.1 million for the three andsix months ended November 30, 2023 compared to the same period in the prior year, respectively. The change for both periods was primarily driven by:
Current wording
Total Company gross profit decreased by $4.6 million and $11.7 million for the three andnine months ended February 29, 2024 compared to the three and nine months ended February 28, 2023, respectively. The change for both periods was primarily driven by:
Previous wording
•Sales volume, which positively impacted gross profit by $0.8 million and $1.3 million, respectively;
Current wording
•Sales mix, which negatively impacted gross profit by $0.8 million and $1.7 million, respectively;
Previous wording
•Inflationary costs on raw materials, labor shortages and freight costs, which negatively impacted gross profit by $0.5 million and $0.9 million, respectively; and
Current wording
•Inflationary costs on raw materials, labor shortages and freight costs had a consistent impact on gross profit for the three months ended February 29, 2024 compared to the three months ended February 28, 2023, and which negatively impacted gross profit by $0.7 million for the nine months ended February 29, 2024 compared to the nine months ended February 28, 2023; and
Previous wording
•Incremental depreciation on placement units of $0.2 million and $0.4 million, respectively.
Current wording
•Incremental depreciation on placement units of $0.2 million and $0.8 million, respectively.
Previous wording
The Med Tech segment gross profit increased by $0.2 million and $2.5 million for the three andsix months ended November 30, 2023 compared to the same period in the prior year, respectively. The change for both periods was primarily driven by:
Current wording
The Med Tech segment gross profit increased by $1.1 million and $3.6 million for the three andnine months ended February 29, 2024 compared to the three and nine months ended February 28, 2023, respectively. The change for both periods was primarily driven by:
Previous wording
•Price and other incentives which positively impacted gross profit by $0.2 million and $0.9 million, respectively;
Current wording
•Price and other incentives which positively impacted gross profit by $0.4 million and $1.5 million, respectively;
Previous wording
•Sales volume, which positively impacted gross profit by $0.7 million and $2.8 million, respectively;
Current wording
•Sales mix, which negatively impacted gross profit by $0.7 million and $1.5 million, respectively; and
Previous wording
•Incremental depreciation on placement units of $0.1 million and $0.1 million, respectively.
Current wording
•Incremental depreciation on placement units of $0.1 million and $0.5 million, respectively.
Previous wording
The Med Device segment gross profit decreased by $5.0 million and $9.6 million for the three andsix months ended November 30, 2023 compared to the same period in the prior year, respectively. The change for both periods was primarily driven by:
Current wording
The Med Device segment gross profit decreased by $5.7 million and $15.3 million for the three andnine months ended February 29, 2024 compared to the three and nine months ended February 28, 2023, respectively. The change for both periods was primarily driven by:
Previous wording
•Production volume, price and other incentives which positively impacted gross profit by $0.1 million and $1.0 million, respectively;
Current wording
•Production volume, price and other incentives, which negatively impacted gross profit by $0.9 million and $0.2 million, respectively and is inclusive of a $1.0 million recall reserve that was recorded in the third quarter of fiscal year 2024;
Previous wording
•The timing of certain projects and clinical spend associated with the ongoing clinical trials, which increased R&D expense by $1.6 million and $1.0 million, respectively; and
Current wording
•The timing of certain projects and clinical spend associated with the ongoing clinical trials, which increased R&D expense by $0.6 million and $1.4 million, respectively; and
Previous wording
•Compensation and benefits expenses, which increased $0.2 million and $0.6 million, respectively.
Current wording
•Compensation and benefits expenses, which increased $0.8 million and $1.3 million, respectively.
Previous wording
S&M expense decreased $0.5 million and increased $0.3 million for the three and six months ended November 30, 2023 compared to the same period in the prior year. The change for both periods was primarily driven by:
Current wording
S&M expense remained consistent for the three months ending February 29, 2024 compared to the three months ended February 28, 2023, and increased $0.3 million for the nine months ended February 29, 2024 compared to the nine months ended February 28, 2023. The change for both periods was primarily driven by:
Previous wording
•Compensation and benefits expense, which increased by $0.7 million and $2.1 million, respectively; and
Current wording
•Compensation and benefits expense, which increased by $1.1 million and $3.1 million, respectively; and
Previous wording
•Trade show expenses, which increased $0.1 million and $0.2 million, respectively. This was partially offset by travel and other selling expenses, which decreased $1.2 million and $1.9 million, respectively.
Current wording
•Trade show expenses, which decreased $0.1 million and increased $0.1 million, respectively. This was partially offset by travel and other selling expenses, which decreased $0.8 million and $2.7 million, respectively.
Previous wording
•Other outside consultant spend for legal and IT, which decreased $0.2 million and $0.1 million, respectively along with decreased travel expenses of $0.1 million and $0.3 million, respectively.
Current wording
•Other outside consultant spend for legal and IT, which increased $0.1 million for the three months ending February 29, 2024 compared to the three months ended February 28, 2023 and remained consistent for the nine months ending February 29, 2024 compared to the nine months ended February 28, 2023, along with increased travel expenses of $0.3 million for the three months ending February 29, 2024.
Previous wording
•Amortization expense decreased $1.2 million and $2.5 million for the three and six months ended November 30, 2023 compared to the same period in the prior year, respectively, due to the intangible assets that were included in the sale of the dialysis and BioSentry businesses.
Current wording
•Amortization expense decreased $1.5 million and $3.9 million for the three and nine months ended February 29, 2024 compared to the three and nine months ended February 28, 2023, 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 and six months ended November 30, 2023 is related to the Eximo contingent consideration.
Current wording
•The change in the fair value for the three and nine months ended February 29, 2024 is related to the Eximo contingent consideration.
Previous wording
Acquisition, restructuring and other items, net, increased by $3.1 million and $0.8 million for the three and six months ended November 30, 2023, compared to the same period in the prior year, respectively. The change for both periods was primarily driven by:
Current wording
Acquisition, restructuring and other items, net, increased by $32.0 million and $32.8 million for the three and nine months ended February 29, 2024, compared to the three and nine months ended February 28, 2023, 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 increased $2.9 million and $2.9 million, respectively;
Current wording
•Legal expense, related to litigation that is outside of the normal course of business, which increased $20.7 million and $23.6 million, respectively was driven by the $19.3 million settlement between the Company and BD;
Previous wording
•Mergers and acquisition expense, which increased $0.3 million and $0.3 million, respectively;
Current wording
•Mergers and acquisition expense, which increased $0.1 million and $0.4 million, respectively;
Showing the first 40 of 54 pairs. Open the source sections for the rest.
Rearranged current paragraphs (3)
Current report — wording carried from elsewhere
On February 15, 2024, the Company completed the sale of the PICC and Midline businesses to Spectrum Vascular. The Company also entered into various agreements to facilitate the transition to Spectrum, including a Transition Services Agreement and Contract Manufacturing Agreement. Total consideration received by the Company for the Divestiture was $34.5 million in cash and resulted in a pre-tax book gain of $6.7 million. Included in the agreement is a $5.5 million earn-out related to the sales of divested products over a two year period and a milestone payment of $5.0 million paid upon final transfer of the manufacturing to a third-party.
Current report — wording carried from elsewhere
•Compensation and benefits expenses, which increased $1.5 million and $1.0 million, respectively; and
Current report — wording carried from elsewhere
•$34.5 million of cash was received for the divestiture of the PICCs and Midline businesses in the third quarter of fiscal year 2024; and
Rearranged previous paragraphs (1)
Previous report — wording carried elsewhere
•Inflationary costs on raw materials, labor shortages and freight costs, which negatively impacted gross profit by $0.5 million and $0.8 million, respectively; and