Exchange: NASDAQ | Sector: Healthcare | Industry: Medical Instruments Supplies
Q4 2024
Published: Jul 25, 2024
Earnings Highlights
Revenue of $70.98M down 22.1% year-over-year
EPS of $-0.33 increased by 38.9% from previous year
Gross margin of 50.6%
Net income of -13.45M
""We are in a tremendous position to now shift into execution mode and work to drive accelerating adoption and utilization within our Med Tech businesses." - Jim Clemmer" - Jim Clemmer
AngioDynamics Inc (ANGO) reported a total revenue of $71.1 million for the fourth quarter of fiscal 2024, reflecting a modest year-over-year increase of 2%, driven primarily by a strong performance in the Med Tech segment, which grew by 11%. However, the company's net income showed a continued strain, with a GAAP net loss of $13.4 million. The company's management, led by CEO Jim Clemmer, emphasized the successful execution of strategic initiatives that have transformed their product offerings and market position over the past three years. These developments, particularly in the Med Tech sector, coupled with effective cash flow management, have positioned AngioDynamics to leverage growth opportunities in fiscal 2025, especially with the anticipated FDA clearance for NanoKnife in prostate cancer treatment.
### Cash Flow:
- Operating Cash Flow: $5.0 million
- Cash at Period End: $76.1 million
- Debt: Zero debt allowing for financial flexibility.
### Ratios:
- Current Ratio: 2.12 indicating strong short-term liquidity.
- Cash Ratio: 0.83, showcasing good cash reserves against current liabilities.
Income Statement
Metric
Value
YoY Change
QoQ Change
Revenue
70.98M
-22.06%
-5.59%
Gross Profit
35.94M
-22.47%
10.34%
Operating Income
-5.81M
-127.20%
49.95%
Net Income
-13.45M
37.35%
92.84%
EPS
-0.33
38.89%
92.93%
Key Financial Ratios
currentRatio
2.12
grossProfitMargin
50.6%
operatingProfitMargin
-8.18%
netProfitMargin
-18.9%
returnOnAssets
-4.23%
returnOnEquity
-6.54%
debtEquityRatio
0.03
operatingCashFlowPerShare
$0.12
freeCashFlowPerShare
$-0.01
priceToBookRatio
1.24
priceEarningsRatio
-4.74
Net Income vs. Revenue
Expense Breakdown
Management Commentary
### Key Insights from Management:
#### Revenue Growth Strategies:
- Jim Clemmer stated, "For the second straight quarter, we delivered double-digit growth in our Med Tech segment... driven by Auryon and NanoKnife."
#### Strategic Portfolio Moves:
- Clemmer shared, "We have expanded our TAM by over 200% to roughly $10 billion" highlighting the effectiveness of pursuing promising Med Tech markets.
#### Future Expectations:
- CFO Stephen Trowbridge mentioned, "For fiscal year 2025, we anticipate revenue will be in the range of $282 million to $288 million, representing growth of between 4.2% and 6.4%."
#### Focus on R&D:
- Trowbridge emphasized, "Our adjusted net loss narrowed significantly this quarter, primarily due to revenue growth and successful expense management initiatives."
"We are in a tremendous position to now shift into execution mode and work to drive accelerating adoption and utilization within our Med Tech businesses." - Jim Clemmer
â Jim Clemmer
"We generated $5 million of excess cash flow from operations, adjusted EBITDA of $1.5 million, and an adjusted loss per share of only $0.05 during the fourth quarter." - Stephen Trowbridge
â Stephen Trowbridge
Forward Guidance
AngioDynamics anticipates continued growth in fiscal 2025, targeting revenue between $282 and $288 million, driven by projected double-digit growth in the Med Tech segment. Management expects challenges due to fluctuating gross margins amidst manufacturing transitions. Significant upside lies in the anticipated FDA approval for NanoKnife targeting prostate cancer patients and strategic investments to bolster its Med Tech platform.
Competitive Position
Company
Gross Margin
Operating Margin
Return on Equity
P/E Ratio
ANGO Focus
50.64%
-8.18%
-6.54%
-4.74%
NSTG
52.80%
-64.40%
-16.50%
-16.48%
ATRI
37.40%
15.30%
2.64%
25.94%
ATR
37.20%
10.00%
2.70%
32.62%
KRMD
57.10%
-30.60%
-36.70%
-3.76%
Gross Profit Margin
Operating Profit Margin
Return on Equity
P/E Ratio Comparison
Investment Outlook
In summary, AngioDynamics presents an intriguing investment opportunity characterized by growing revenues, substantial management confidence in future product performance, and a healthy cash position. The anticipated FDA approval for NanoKnife, alongside strategic investments in Med Tech, suggests that AngioDynamics is poised for a downward recovery in operational losses. However, investors should remain vigilant concerning short-term operational disruptions that may arise due to strategic transitions and competitive market dynamics.
Key Investment Factors
Growth Potential
The Med Tech business accounted for 39% of AngioDynamics' total revenue, showing substantial growth over the past few years. Continued innovation and FDA path forward for the NanoKnife platform presents a significant growth opportunity.
Profitability Risk
However, ongoing operating losses and the transition to outsourced manufacturing could disrupt short-term profitability if not managed properly. Competitive pressures in the healthcare sector also present risks to market share.
Financial Position
AngioDynamics reported a cash balance of $76.1 million with zero debt, indicating strong financial health and enabling the company to invest in strategic expansions and product development.
SWOT Analysis
Strengths
Strong cash position with $76.1 million and no outstanding debt
Robust pipeline with continued innovation in high-growth Med Tech segment
Established market presence with a diversified product offering targeting oncology and vascular access