ANGIODYNAMICS INC
For the period ended Aug 31, 2024. Filed Oct 3, 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.
Aug 31, 2024 · Filed Oct 3, 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 2024-02-29; filed 2024-04-09.
0001628280-24-015487
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent 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 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 135 previous paragraphs and 106 current paragraphs.
36 unchanged; 44 reworded; 25 added; 50 removed; 5 previous and 1 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 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 report
•Revenue decreased by 14.2% to $67.5 million
Current report
•Gross profit increased 350 bps to 54.4%
Current report
•Decreased sales of Syntrax of $0.1 million due to the discontinuation of this product line as of February 29, 2024;
Current 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
Current report
•Decreased NanoKnife sales of $0.4 million, which was driven by decreased capital and disposable sales.
Current report
The change in sales for the three months ended August 31, 2024 compared to the same period in the prior year, was primarily driven by:
Current report
•Decreased sales of RadioFrequency Ablation of $0.9 million due to the discontinuation of this product line as of February 29, 2024; and
Current report
•The sale of the PICCs, Midline, dialysis and BioSentry businesses contributed $3.4 million of gross profit in the prior year;
Current report
•Sales volume, price and product mix, which positively impacted gross profit by $1.5 million;
Current 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;
Current report
•Incremental depreciation and other expense on placement units of $0.5 million.
Current report
•Sales volume, price and product mix, which positively impacted gross profit by $1.8 million;
Current report
•Inflationary costs on raw materials, labor shortages and freight costs negatively impacted gross profit by $0.4 million; and
Current report
•Incremental depreciation and other expense on placement units of $0.6 million.
Current report
•The sale of the PICCs, Midline, dialysis and BioSentry businesses contributed $3.4 million of gross profit in the prior year;
Current 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;
Current report
•Inflationary costs on raw materials, labor shortages and freight costs negatively impacted gross profit by $0.5 million; and
Current report
•Incremental depreciation and other expense on placement units of $0.1 million.
Current 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:
Current report
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 report
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 report
Cash used in financing activities
Current report
•$0.6 million of cash was used for the repurchase of commons shares in the first quarter of fiscal year 2025;
Current report
•$10.0 million of contingent consideration payments made in the first quarter of fiscal year 2024; and
Removed paragraphs (50)
Previous report
On June 8, 2023, the Company completed the sale of the dialysis and BioSentry businesses to Merit Medical Systems, Inc. The Company also entered into various agreements to facilitate the transition to Merit, including a Transition Services Agreement and Contract Manufacturing Agreement. Total consideration received by the Company for the Divestiture was $100.0 million in cash and resulted in a pre-tax book gain of $47.8 million.
Previous 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.
Previous report
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.
Previous 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.
Previous 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.
Previous report
•Revenue decreased by 6.9% to $75.2 million
Previous report
•Gross profit decreased 250 bps to 47.7%
Previous report
Nine months ended February 29, 2024:
Previous report
•Revenue decreased by 6.0% to $232.9 million
Previous report
•Med Tech growth of 9.8% and Med Device declined by 12.2%
Previous report
•Gross profit decreased 170 bps to 49.9%
Previous report
•Med Tech gross profit decreased 100 bps 62.8% and Med Device gross profit decreased 330 bps to 43.5%
Previous report
•Net loss increased by $139.9 million to $170.9 million
Previous report
•Cash used in operations increased by $17.3 million to $33.2 million
Previous report
•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 report
•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 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:
Previous 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
Previous 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:
Previous 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
Previous 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.
Previous 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;
Previous report
•Sales volume, which positively impacted gross profit by $2.5 million and $6.5 million, respectively;
Previous report
•Price, which positively impacted gross profit by $1.1 million and $1.1 million, respectively;
Previous 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;
Previous 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 $0.7 million for the nine months ended February 29, 2024 compared to the nine months ended February 28, 2023; and
Previous report
•Incremental depreciation on placement units of $0.2 million and $0.8 million, respectively.
Previous report
•Sales volume, which positively impacted gross profit by $1.6 million and $4.4 million, respectively;
Previous report
•Price and other incentives which positively impacted gross profit by $0.4 million and $1.5 million, respectively;
Previous report
•Sales mix, which negatively impacted gross profit by $0.7 million and $1.5 million, respectively; and
Previous report
•Incremental depreciation on placement units of $0.1 million and $0.5 million, respectively.
Previous 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;
Previous report
•Sales mix, which negatively impacted gross profit by $0.4 million and $0.9 million, respectively;
Previous 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
Previous 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.
Previous 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:
Previous report
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 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:
Previous report
•Compensation and benefits expenses, which increased $1.5 million and $1.0 million, respectively; and
Previous report
Goodwill impairment - Represents the impairment charge taken on goodwill.
Showing the first 40 of 50 passages. Open the source sections for the rest.
Reworded paragraphs (44)
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 nine months ended February 29, 2024 compared to the three and nine months ended February 28, 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 months ended August 31, 2024 compared to the three months ended August 31, 2023 are as follows:
Previous wording
•Med Tech growth of 13.0% and Med Device declined by 14.7%
Current wording
•Med Tech growth of 8.2% and Med Device decrease of 25.2%
Previous wording
•Med Tech gross profit decreased 320 bps to 61.4% and Med Device gross profit decreased 400 bps to 40.5%
Current wording
•Med Tech gross profit decreased 140 bps to 63.3% and Med Device gross profit increased 390 bps to 48.1%
Previous wording
•Net loss increased by $178.3 million to $187.7 million
Current wording
•Net loss increased by $58.7 million to $12.8 million
Previous wording
•Loss per share increased by $4.43 to $4.67
Current wording
•Loss per share increased by $1.46 to $0.31
Previous 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.
Current 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.
Previous 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.
Current 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.
Previous 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.
Current 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.
Previous 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:
Current 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:
Previous wording
•Increased Auryon sales of $1.5 million and $5.0 million compared to the three and nine months ended February 28, 2023, respectively;
Current wording
•Increased Auryon sales of $2.7 million;
Previous 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.
Current 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.
Previous wording
•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 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;
Previous 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;
Current 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;
Previous 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.
Current 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.
Previous 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:
Current 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:
Previous 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;
Current wording
•Inflationary costs on raw materials, labor shortages and freight costs negatively impacted gross profit by $0.9 million; and
Previous 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:
Current 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:
Previous 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:
Current 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:
Previous wording
•Sales volume, which positively impacted gross profit by $1.0 million and $2.3 million, respectively;
Current wording
•Sales volume, which negatively impacted gross profit by $1.0 million;
Previous wording
•Sales mix, which negatively impacted gross profit by $0.8 million and $1.7 million, respectively;
Current wording
•Price and product mix, which positively impacted gross profit by $0.8 million;
Previous 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
Current 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
Previous wording
•Compensation and benefits expense, which increased by $1.1 million and $3.1 million, respectively; and
Current wording
•Compensation and benefits expense, which decreased by $1.7 million; and
Previous 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.
Current wording
•Travel and other selling expenses, which decreased $0.2 million and was partially offset by trade show expenses, which increased $0.4 million.
Previous wording
•Compensation and benefits expenses, which increased $0.8 million and $1.3 million, respectively.
Current wording
•Compensation and benefits expenses, which decreased $0.8 million; and
Previous 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.
Current wording
•Other outside consultant spend for legal and IT, which increased $0.9 million.
Previous 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.
Current 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.
Previous wording
•The change in the fair value for the three and nine months ended February 29, 2024 is related to the Eximo contingent consideration.
Current wording
•The change in the fair value for the three months ended August 31, 2024 is related to the Eximo contingent consideration.
Previous 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:
Current 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:
Previous 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;
Current wording
•Legal expense, related to litigation that is outside of the normal course of business, which decreased $1.3 million;
Previous wording
•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 wording
•Plant closure expense, related to the restructuring of our manufacturing footprint which was announced on January 5, 2024, which increased $3.6 million;
Previous wording
•Transaction services agreements that were entered into as a result of the sale of the PICCs, Midline, dialysis and BioSentry businesses. The Company invoiced Spectrum $0.1 million and $0.1 million for the three and nine months ended February 29, 2024, respectively. The Company invoiced Merit Medical Systems, Inc. $0.2 million and $0.5 million for the three and nine months ended February 29, 2024, respectively;
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 $0.4 million; and
Previous wording
•Manufacturing relocation expense related to the move of certain manufacturing lines from Queensbury, New York to a third party, which decreased $0.3 million and $0.5 million, respectively;
Current 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.
Previous wording
Other expense, net - Other expenses include interest expense, foreign currency impacts, bank fees, and amortization of deferred financing costs.
Current wording
Other expense, net - Other expenses include interest expense, foreign currency impacts and bank fees.
Previous wording
•The change in other expense of $0.9 million and $2.7 million forthe three and nine months ended February 29, 2024, compared to the three and nine months ended February 28, 2023, respectively, is primarily due todecreased interest expense of $0.8 million and $1.7 million, respectively, increased interest income of $0.3 million and $1.0 million, respectively and unrealized foreign currency fluctuations of $0.2 million and $0.1 million, respectively.
Current wording
•The change in other expense of $0.6 million for the three months ended August 31, 2024, compared to the same period in the prior year, is primarily due toincreased interest income of $0.4 million and unrealized foreign currency fluctuations of $0.1 million.
Previous wording
Our effective tax rate including discrete items for the three months ended February 29, 2024 and February 28, 2023 was 6.0% and 1.9%, respectively. Our effective tax rate including discrete items for the nine months ended February 29, 2024 and February 28, 2023 was 3.7% and 4.9%, respectively. In fiscal year 2024, the Company’s effective tax rate differs from the U.S. statutory rate primarily due to the impact of the valuation allowance, foreign taxes, and other non-deductible permanent items (such as non-deductible meals and entertainment, Section 162(m) excess compensation and non-deductible share-based compensation).
Current wording
Our effective tax rate including discrete items for the three months ended August 31, 2024 and August 31, 2023 was (1.1)% and (31.6)%, respectively. In fiscal year 2025, the Company’s effective tax rate differs from the U.S. statutory rate primarily due to the impact of the valuation allowance, foreign taxes, and other non-deductible permanent items (such as non-deductible meals and entertainment, Section 162(m) excess compensation and non-deductible stock-based compensation).
Previous wording
Our cash and cash equivalents totaled $78.5 million as of February 29, 2024, compared with $44.6 million as of May 31, 2023. As of February 29, 2024 there was no outstanding debt as the Credit Agreement was extinguished in connection with the Divestiture (see Note 7 "Long-Term Debt" set forth in the Notes to our consolidated financial statements included in this Quarterly Report on Form 10-Q). As of May 31, 2023, total debt outstanding related to the Credit Agreement was $50.0 million. The fair value of contingent consideration liability as of February 29, 2024 and May 31, 2023, was $9.5 million and $19.3 million, respectively.
Current wording
Our cash and cash equivalents totaled $55.0 million as of August 31, 2024, compared with $76.1 million as of May 31, 2024. As of August 31, 2024 and May 31, 2024 the Company did not have any outstanding debt. The fair value of contingent consideration liability as of August 31, 2024 and May 31, 2024, was $4.8 million and $4.7 million, respectively.
Previous wording
•Net loss of $170.9 million and a net loss of $31.0 million, respectively, plus the non-cash items, primarily driven by depreciation and amortization and stock based compensation, along with the changes in working capital below, contributed to cash used in operations of $33.2 million and $15.9 million, respectively, for these periods.
Current wording
•Net loss of $12.8 million and a net income of $45.9 million, respectively, plus the non-cash items, primarily driven by depreciation and amortization and stock based compensation, along with the changes in working capital below, contributed to cash used in operations of $18.3 million and $25.9 million, respectively, for these periods.
Previous wording
•For the period ended February 29, 2024, working capital was unfavorably impacted by decreased accounts payable, accrued liabilities and other liabilities of $16.7 million, along with increased inventory and prepaid expenses of$6.8 million and $7.6 million, respectively. This was partially offset by decreased accounts receivable of$2.3 million.
Current wording
•For the period ended August 31, 2024, working capital was unfavorably impacted by decreased accounts payable, accrued liabilities and other liabilities of $15.0 million, along with increased inventory and prepaid expenses of$4.1 million and $0.8 million, respectively. This was partially offset by decreased accounts receivable of$3.8 million.
Previous wording
•For the period ended February 28, 2023, working capital was unfavorably impacted by decreased accounts payable, accrued liabilities and other liabilities of $7.1 million, along with increased inventory and prepaid expenses of $12.3 million and $0.4 million, respectively. This was partially offset by decreased accounts receivable of$0.8 million.
Current wording
•For the period ended August 31, 2023, working capital was unfavorably impacted by decreased accounts payable, accrued liabilities and other liabilities of $16.5 million, along with increased inventory and prepaid expenses of $4.6 million and $4.2 million, respectively. This was partially offset by decreased accounts receivable of$3.2 million.
Previous wording
Cash (used in) provided by financing activities
Current wording
Cash (used in) provided by investing activities
Showing the first 40 of 44 pairs. Open the source sections for the rest.
Rearranged current paragraphs (1)
Current report — wording carried from elsewhere
•Compensation and benefits expenses, which decreased $0.4 million.
Rearranged previous paragraphs (5)
Previous report — wording carried elsewhere
On June 8, 2023 and in connection with the completion of the Divestiture, the Company repaid all amounts outstanding under its existing Credit Agreement, and as a result, the Credit Agreement was extinguished.
Previous report — wording carried elsewhere
•Loss per share increased by $3.47 to $4.26
Previous report — wording carried elsewhere
•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;
Previous report — wording carried elsewhere
•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 report — wording carried 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