AngioDynamics Fiscal 2004 Fourth Quarter Net Earnings Nearly Triple on 26% Growth in Net Sales; Conference Call to Begin at 4:30 P.M. EDT Today.QUEENSBURY, N.Y. -- AngioDynamics, Inc. (Nasdaq:ANGO ANGO Algemene Nederlandse Gehandicapten Organisatie (Dutch: Equal Opportunities for Persons with Disabilities) ) today announced financial results for the three and 12 months ended May 29, 2004. Highlights of the fourth quarter of fiscal year 2004 (June through May) include: --Net sales growth of 26% over the fourth quarter of fiscal year 2003 --Net earnings up 190% over the fourth quarter of fiscal year 2003 --Successful completion of an initial public offering --Market launch of the Mariner Mariner Any of a series of unmanned U.S. space probes sent near Venus, Mars, and Mercury. Mariners 2 (1962) and 5 (1967) passed Venus within 22,000 mi (35,000 km) and 2,500 mi (4,000 km), respectively, and made measurements of temperature and atmospheric density. (TM) hydrophilic hydrophilic /hy·dro·phil·ic/ (-fil´ik) readily absorbing moisture; hygroscopic; having strongly polar groups that readily interact with water. hy·dro·phil·ic adj. angiographic catheter in the U.S.; --Market launch of the AngioFlow(TM) thermal dilution catheter and AngioFlow Meter in the U.S.; --Market launch of the MORPHEUS(TM) peripherally inserted central catheter A peripherally inserted central catheter- (PICC or PIC line) is a form of intravenous access that can be used for a prolonged period of time, e.g. for long chemotherapy regimens, extended antibiotic therapy or total parenteral nutrition. in the U.S.; and --Market launch of the SPEEDLYSER(TM) thrombolytic thrombolytic /throm·bo·lyt·ic/ (throm?bo-lit´ik) dissolving or splitting up a thrombus, or an agent that so acts. thrombolytic 1. dissolving or splitting up a thrombus. 2. an agent that dissolves or splits up a thrombus. catheter in the U.S. Net sales Net Sales The amount a seller receives from the buyer after costs associated with the sale are deducted. Notes: This amount is calculated by subtracting the following items from gross sales: merchandise returned for credit, allowances for damaged or missing goods, freight of $14.1 million for the fiscal 2004 fourth quarter increased 26% compared with net sales of $11.2 million for the fourth quarter of fiscal year 2003. The Company attributes the sales increase to solid market penetration Noun 1. market penetration - the extent to which a product is recognized and bought by customers in a particular market penetration - the act of entering into or through something; "the penetration of upper management by women" for its new product launches, as well as to continued growth of its core products. Gross profit was up 29% to $7.5 million for the fiscal 2004 fourth quarter, compared with gross profit of $5.8 million for the prior-year fourth quarter. Gross profit increased by 135 basis points to 53.3% of net sales. Improvement in gross profit margins Gross profit margin Gross profit divided by sales, which is equal to each sales dollar left over after paying for the cost of goods sold. gross profit margin A measure calculated by dividing gross profit by net sales. was due to increased sales volume, a favorable product mix and improved manufacturing efficiencies. Operating profit Operating profit (or loss) Revenue from a firm's regular activities less costs and expenses and before income deductions. operating profit See operating income. for the fourth quarter increased 83% to $1.9 million, compared with $1.0 million in the fourth quarter of fiscal year 2003, and operating profit increased by 424 basis points to 13.6% of net sales. The effective tax rate for the quarter was 14% as a result of the utilization of previously unrecorded capital loss carry forwards, which offset capital gains realized by our parent company, E-Z-EM, under a tax-sharing arrangement to offset the gains arising from security sales by E-Z-EM. Going forward, the Company anticipates that the effective tax rate will increase to more historical rates. Net earnings for the fiscal 2004 fourth quarter nearly tripled to $1.5 million, or $0.15 per diluted share, compared with net earnings of $0.5 million, or $0.06 per diluted share, in the prior-year period. For the 12 months ended May 29, 2004, net sales were $49.1 million, up 28% from $38.4 million for fiscal 2003. The increase in our net sales was due to new product introductions, the expansion of our domestic sales force and increased sales of our existing product lines. Also, the Company's Precision Laser system for the treatment of severe varicose veins Varicose Veins Definition Varicose veins are dilated, tortuous, elongated superficial veins that are usually seen in the legs. Description , which was introduced late in fiscal year 2003, has been selling extremely well. Net earnings for fiscal year 2004 were $3.1 million, up 165% compared with net earnings of $1.2 million for fiscal year 2003. Note, the laser system is being renamed VenaCure(TM) Laser Vein Treatment and the Company is currently preparing for the official launch. In the final week of the fiscal year, we successfully completed an initial public offering of common stock, selling 1.95 million shares at $11 per share, which together with an additional 292,500 shares sold pursuant to the exercise in June 2004 by the underwriters of their over-allotment option, aggregated about 19.6% of our outstanding shares. In addition, consistent with E-Z-EM's commitment to maximize shareholder value, E-Z-EM has advised us that it intends to distribute to E-Z-EM shareholders its AngioDynamics shares in a tax-free dividend. We expect that these shares will be distributed between the end of September 2004 and February 5, 2005. We believe as an independent public company AngioDynamics will have greater access to capital and enjoy greater flexibility to take advantage of business opportunities that may arise. "The completion of our initial public offering and the introduction of our company to the public equity markets represented a major milestone for the team at AngioDynamics," said Eamonn P. Hobbs, President and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. of AngioDynamics. "I am delighted with our solid execution of sales and marketing activities across all product lines during the fourth quarter of fiscal year 2004, with increased sales of core products and the successful launch of new ones. This is a testament to the talents of the team we have assembled. "We have high expectations for the performance of some of our newer products," Mr. Hobbs continued. "For example our MORPHEUS PICC PICC Peripherally-inserted central catheter Critical care An IV catheter inserted in the superior vena cava for long-term infusion of bolus or continuous delivery of therapeutics or TPN–drugs, fluids, nutrients, chemotherapy. Cf Catheter. line, which we just introduced, allows for the rapid injection of contrast media for CT studies as well as allowing for lower pressure injections normally associated with a PICC line for greater patient comfort and easier use by healthcare practitioners. Our goal is to continue to offer advanced products to the peripheral vascular disease Peripheral Vascular Disease Definition Peripheral vascular disease is a narrowing of blood vessels that restricts blood flow. It mostly occurs in the legs, but is sometimes seen in the arms. market." Cash, cash equivalents, and debt securities were $2.5 million at May 29, 2004. In addition, AngioDynamics recorded a stock subscription receivable in the amount of $19.9 million, reflecting the proceeds of its initial public offering. Subsequent to year-end, the Company received net proceeds Net Proceeds The amount received after all costs are deducted from the sale of a piece of property or security. Notes: In the case of an investor selling a security, net proceeds represent the proceeds from the sale minus any trading costs (i.e. commissions). of approximately $3.0 million from the exercise by the underwriters of the over-allotment. Conference Call AngioDynamics management will host a conference call to discuss these results today at 4:30 p.m. Eastern Daylight Time. To participate in the call, please dial 877-815-7177 toll-free from the U.S., or 706-679-0753 from outside the U.S. A telephone replay of the call will be available for 48 hours following completion of the call by dialing 800-642-1687 toll-free or 706-645-9291, and entering reservation number 8953054. In addition, individuals may listen to the call on the Internet by visiting the investor relations Investor relations The process by which the corporation communicates with its investors. portion of the Company's Web site at http://investor.angiodynamics.com/. A recording of the conference call will be archived there for 14 days. About AngioDynamics AngioDynamics, Inc. (www.angiodynamics.com) designs, develops, manufactures and markets innovative medical devices used in minimally invasive, image-guided procedures to treat peripheral vascular disease. It offers a broad line of therapeutic and diagnostic devices that enable interventional physicians, such as interventional radiologists, vascular surgeons and others, to treat peripheral vascular diseases and other non-coronary diseases. The Company's diverse product line includes angiographic catheters, hemodialysis hemodialysis /he·mo·di·al·y·sis/ (-di-al´i-sis) removal of certain elements from the blood by virtue of the difference in rates of their diffusion through a semipermeable membrane while being circulated outside the body; the process catheters, endovascular laser venous venous /ve·nous/ (ve´nus) pertaining to the veins. ve·nous adj. Of, relating to, or contained in the veins. venous pertaining to the veins. system products, PTA PTA or parent-teacher association: see parent education. dilation dilation /di·la·tion/ (di-la´shun) 1. the act of dilating or stretching. 2. dilatation. di·la·tion n. 1. balloon catheters balloon catheter n. A catheter with an inflatable balloon at its tip, used especially to expand a partially obstructed blood vessel or bodily passage and to measure blood pressure in a blood vessel. Also called balloon-tip catheter. , image-guided vascular access vascular access Clinical medicine The ability to enter the vascular system; the ease with which the vascular system can be entered for administering therapy or obtaining blood for testing products, thrombolytic products, and drainage products. AngioDynamics is a majority-owned subsidiary majority-owned subsidiary A firm in which more than 50% of outstanding voting stock is owned by the parent company. of E-Z-EM, Inc. (AMEX AMEX See: American Stock Exchange :EZM), a leading manufacturer of contrast agents for gastrointestinal radiology radiology, branch of medicine specializing in the use of X rays, gamma rays, radioactive isotopes, and other forms of radiation in the diagnosis and treatment of disease. . The statements made in this document contain certain forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. that involve a number of risks and uncertainties. Words such as "expects", "intends", "anticipates", "plans", "believes", "seeks", "estimates," or variations of such words and similar expressions, are intended to identify such forward-looking statements. Investors are cautioned that actual events or results may differ from the Company's expectations. In addition to the matters described above, the ability of the Company to develop its products, market acceptance and future sales of the Company's products, future actions by the Food and Drug Administration or other regulatory agencies regulatory agency Independent government commission charged by the legislature with setting and enforcing standards for specific industries in the private sector. The concept was invented by the U.S. , results of pending or future clinical trials, overall economic conditions, general market conditions, market acceptance of its products, foreign currency exchange rate fluctuations, the effects on pricing from competition, as well as the risk factors listed from time to time in the Company's registration statement on Form S-1 and the related prospectus for its initial public offering, as well as SEC filings of E-Z-EM, Inc., including but not limited to E-Z-EM's Form 10-Q Form 10-Q See 10-Q. for the quarter ended February 28, 2004, as well as E-Z-EM's Annual Report on Form 10-K Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. for the year ended May 31, 2003, may affect the actual results achieved by the Company.
AngioDynamics, Inc. and Subsidiary
(a majority-owned subsidiary of E-Z-EM, Inc.)
CONSOLIDATED INCOME STATEMENT HIGHLIGHTS
(in thousands, except per share data)
Three months Twelve months
ended ended
---------------------------------
May May May May
29, 31, 29, 31,
2004 2003 2004 2003
---------------------------------
(unaudited) (audited)
Net sales $14,119 $11,235 $49,055 $38,434
Cost of goods sold 6,599 5,402 23,254 18,572
---------------------------------
Gross profit 7,520 5,833 25,801 19,862
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Operating expenses
Selling and administrative 4,650 4,045 17,127 14,115
Research and development 954 740 3,551 2,509
---------------------------------
Total operating expenses 5,604 4,785 20,678 16,624
---------------------------------
Operating profit 1,916 1,048 5,123 3,238
Interest expense, net 121 253 742 983
---------------------------------
Earnings before income tax provision 1,795 795 4,381 2,255
Income tax provision 249 262 1,238 1,069
---------------------------------
NET EARNINGS $1,546 $533 $3,143 $1,186
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Earnings per common share
Basic $.17 $.06 $.34 $.13
Diluted $.15 $.06 $.32 $.13
=================================
Weighted Average Common Shares
Basic 9,264 9,200 9,216 9,200
Diluted 10,107 9,472 9,838 9,472
AngioDynamics, Inc. and Subsidiary
(a majority-owned subsidiary of E-Z-EM, Inc.)
CONSOLIDATED BALANCE SHEET HIGHLIGHTS
(in thousands)
May 29, May 31,
Assets 2004 2003
----------------
(1) (1)
Current Assets
Cash, Cash Equivalents, and Debt Securities $2,484 $1,668
Restricted Cash 101 798
Accounts Receivable, net 7,945 6,532
Stock Subscription Receivable 19,949 -
Inventories 8,545 8,631
Other Current Assets 1,351 896
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Total Current Assets 40,375 18,525
Property, Plant & Equipment - at cost, net 7,343 6,261
Other Non-Current Assets 2,008 2,270
----------------
Total Assets $49,726 $27,056
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Liabilities and Stockholders' Equity
Current Liabilities $6,394 $6,165
Long-Term Debt 6,100 19,403
Stockholders' Equity 37,232 1,488
----------------
Total Liabilities and Stockholders' Equity $49,726 $27,056
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(1) Information derived from audited financial statements
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