AngioDynamics Reports Fiscal First Quarter Sales up 23%, Net Earnings Increase Sharply; Conference Call to Begin Today at 4:30 P.M. ET.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 thirteen weeks ended August 28, 2004. Highlights of the first quarter of fiscal year 2005 (June through August) include: --Net sales growth of 23% over the first quarter of fiscal year 2004 to $13.1 million --Net earnings up 147% over the first quarter of fiscal year 2004 to $761,000 --510(k) clearance from the U.S. Food and Drug Administration (FDA FDA abbr. Food and Drug Administration FDA, n.pr See Food and Drug Administration. FDA, n.pr the abbreviation for the Food and Drug Administration. ) for the MORPHEUS(TM) CT 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. --Laser Venous System successfully re-branded 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 $13.1 million for the fiscal year 2005 first quarter increased 23% compared with net sales of $10.6 million for the first quarter of fiscal year 2004. This increase was primarily due to strong growth from the Company's newest products, along with continued market share gains across the entire product portfolio. VenaCure(TM), AngioDynamics' 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 , continues to sell extremely well under this new brand name. VenaCure procedure kit sales, along with the Company's 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 and 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, were particularly strong contributors to the first quarter results. Net earnings for the fiscal 2005 first quarter rose 147% to $761,000 or $0.06 per diluted share, compared with net earnings of $308,000, or $0.03 per diluted share, in the prior-year period. "We are quite pleased with our revenue growth of over 23% from the prior year," 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. "We demonstrated strong 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" with our newer product lines, and with continued sales growth in all our core products. Substantially all of the increase in our revenues was due to increased unit sales unit sales Sales measured in terms of physical units rather than dollars. Unit sales data are often used by financial analysts when evaluating the health of a company. , with only 1.8% of the increase attributable to price increases over the prior year. Clearly our customers appreciate our innovative, category-leading products, and our sole focus to serve the interventional 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. marketplace will further address clinician clinician /cli·ni·cian/ (kli-nish´in) an expert clinical physician and teacher. cli·ni·cian n. needs and drive continued sales growth." Gross profit was up 26% to $7.0 million for the fiscal 2005 first quarter, compared with gross profit of $5.5 million for the prior-year first quarter. Gross margin for the fiscal 2005 quarter was 53.4%, up from 52.1% in the comparable 2004 quarter. The increase in gross margin was due to a favorable product mix and to increased production 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 first quarter increased 35% to $1.3 million, compared with $943,000 in the first quarter of fiscal year 2004, and the operating margin Operating Margin A ratio used to measure a company's pricing strategy and operating efficiency. Calculated by: increased by 180 basis points to 9.7% of net sales. The effective tax rate for the quarter ended August 28, 2004 was 40.8%, compared with 55.2% for the quarter ended August 30, 2003. The decrease was primarily due to the elimination of non-deductible imputed interest Imputed Interest A term used to describe interest considered to be paid, even through no interest payment has been made. Notes: Imputed interest is calculated based upon actual payments that are to be paid, but have not yet been paid. expense recorded by us in the fiscal 2004 period, as a result of the capitalization by E-Z-EM of $13.1 million of our debt to E-Z-EM in connection with our initial public offering in May 2004. We subsequently repaid the remaining $3.0 million to E-Z-EM in June 2004. Cash and cash equivalents were $20.7 million at August 28, 2004 compared to $1.7 million at the same time last year. The increase is due primarily to the proceeds received from the initial public offering including the exercise of the underwriters' over-allotment option. AngioDynamics' parent company E-Z-EM, Inc., (AMEX AMEX See: American Stock Exchange :EZM) announced on August 19, 2004 that it had declared a special stock dividend to its shareholders of the 9.2 million shares of AngioDynamics common stock that it holds. The record date for the dividend is October 11, 2004 and the distribution date is October 30, 2004. This distribution will mark the completion of AngioDynamics' spin-off from E-Z-EM. Conference Call AngioDynamics management will host a conference call to discuss this announcement today beginning at 4:30 p.m. Eastern 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 1232115. 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 12 months. 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 catheters, endovascular laser venous 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 products, 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. 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:EZM), a leading manufacturer of contrast agents for gastrointestinal radiology. 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 filings with the SEC, including but not limited to its fiscal 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 fiscal year ended May 29, 2004, 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 shares and per share data)
Thirteen weeks ended
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Aug 28, Aug 30,
2004 2003
---------------------
(unaudited)
Net sales $13,105 $10,630
Cost of goods sold 6,112 5,095
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Gross profit 6,993 5,535
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Operating expenses
Selling and administrative 4,595 3,841
Research and development 1,128 751
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Total operating expenses 5,723 4,592
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Operating profit 1,270 943
Interest income (expense), net 15 (256)
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Earnings before income tax provision 1,285 687
Income tax provision 524 379
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NET EARNINGS $761 $308
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Earnings per common share
Basic $.07 $.03
=====================
Diluted $.06 $.03
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Weighted Average Common Shares
Basic 11,378,214 9,200,000
Diluted 11,789,971 9,471,975
AngioDynamics, Inc. and Subsidiary
(a majority-owned subsidiary of E-Z-EM, Inc.)
CONSOLIDATED BALANCE SHEET HIGHLIGHTS
(in thousands)
Aug 28, May 29,
Assets 2004 2004
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(2) (1)
Current Assets
Cash, Cash Equivalents, and Debt Securities $21,488 $2,484
Restricted Cash 101 101
Accounts Receivable, net 7,176 7,945
Stock subscription receivable 19,949
Inventories 9,216 8,545
Other current assets 1,222 1,351
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Total current assets 39,203 40,375
Property, Plant & Equipment - at cost, net 7,450 7,343
Other Non-Current Assets 1,977 2,008
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Total Assets $48,630 $49,726
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Liabilities and Stockholders' Equity
Current Liabilities $4,837 $9,394
Long-term Debt 3,060 3,100
Stockholders' Equity 40,733 37,232
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Total Liabilities and Stockholders' Equity $48,630 $49,726
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(1) Information derived from audited financial statements
(2) Unaudited
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