Yahoo Finance AngioDynamics Inc (ANGO) Q3 2024 Earnings Call Transcript Highlights: Navigating Growth Amidst ...
Revenue: $66 million, 8% year-over-year growth.
MedTech Segment Revenue: $25.7 million, 12.6% year-over-year increase.
Med Device Segment Revenue: $40.3 million, 5.2% year-over-year growth.
Gross Margin: 51.1%, a decrease of 290 basis points compared to the previous year.
MedTech Gross Margin: 61.5%, down 300 basis points year-over-year.
Med Device Gross Margin: 44.4%, down 330 basis points year-over-year.
Adjusted Net Loss: $6.5 million, adjusted loss per share of $0.16.
GAAP Net Loss: $190.4 million, loss per share of $4.73.
Adjusted EBITDA: Negative $3.6 million.
Cash and Cash Equivalents: $78.5 million.
Debt: Zero, compared to $50 million a year ago.
Guidance for FY '24 Revenue: $270 million to $275 million.
Guidance for FY '24 Adjusted Loss Per Share: $0.54 to $0.58.
Guidance for FY '24 Gross Margin: 52% to 54%.
MedTech Revenue Growth Forecast: 10% to 15%.
Med Device Revenue Growth Forecast: 2% to 4%.
Release Date: April 04, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
Pro forma revenue growth of approximately 8% year over year, with nearly 13% growth from the MedTech segment and 5% from the med device segments.
NanoKnife sales grew approximately 47% during the third quarter, with sales of probes increasing approximately 20%.
Received FDA clearance for the use of AlphaVac to treat pulmonary embolism, which opens up a large, fast-growing market.
Launched the Auryon XL radial catheter, expanding treatment options for peripheral artery disease and expecting CE Mark by the end of June.
International business grew approximately 21% year over year, including approximately 53% growth for MedTech and 7% growth for med device.
Negative Points
Mechanical thrombectomy business, which includes AngioVac and AlphaVac, declined roughly 12% year over year.
Gross margin for the third quarter decreased by 290 basis points compared to the year-ago period, with MedTech gross margin down by 300 basis points and med device gross margin down by 330 basis points.
Adjusted net loss for the third quarter was $6.5 million, with an adjusted loss per share of $0.16, compared to an adjusted net loss of $5.4 million or adjusted loss per share of $0.14 in the third quarter of last year.
Reported a GAAP net loss of $190.4 million or a loss per share of $4.73 in the third quarter of fiscal '24, including significant charges related to goodwill impairment, settlement, and asset impairment.
Divested and discontinued products that contributed approximately $50 million of sales in FY '23, which may impact future cash generation.
Q & A Highlights
Q: Can you provide details on the results of the APEX trial for AlphaVac? A: (Steve Trowbridge - EVP & CFO) The results of the APEX trial exceeded expectations, comfortably hitting targeted endpoints and showing significant clot removal in less time compared to other trials. Data will be released through publications and presentations at upcoming trade shows.
Q: What are the timing and regulatory requirements for enhancements to AlphaVac? A: (Steve Trowbridge - EVP & CFO) Enhancements to AlphaVac are expected in the second half of the calendar year, with some requiring a 510(k) submission and others possibly a letter to file.
Q: Is there any change in guidance for the fiscal fourth quarter? A: (Jim Clemmer - President & CEO) No market changes have been observed that would alter guidance. The company is keeping guidance consistent despite various ongoing transitions and divestitures.
Q: Are there plans for capital deployment, such as buybacks or acquisitions? A: (Jim Clemmer - President & CEO) The company is not looking to acquire additional products or assets and will discuss potential buybacks at the Board level in the future.
Q: What are the rollout plans for AlphaVac in treating pulmonary embolism (PE)? A: (Steve Trowbridge - EVP & CFO) The company has prepared its sales force and will conduct a limited market release in the remaining fiscal quarter, followed by a full launch in the next fiscal year.
Q: Can you provide an outlook on gross margin for FY '25? A: (Steve Trowbridge - EVP & CFO) Detailed margin guidance for FY '25 will be provided in the Q4 results. The company expects gross margin to be impacted by the manufacturing transfer, but anticipates improvement once the transition is complete.
Q: Were the recently divested products cash accretive? A: (Steve Trowbridge - EVP & CFO) The divested products were cash accretive, and the company is working through the cash generation impact as it restructures.
Q: What is the commercial sales force size for AlphaVac, and is there a need for more studies or registries? A: (Jim Clemmer - President & CEO) The company has 40 sales reps for AlphaVac and AngioVac, with plans to add more as needed. Continued data generation efforts will support the product, including registries and trials.
Q: What is driving the strong quarter for NanoKnife, and when can initial preserve data be expected? A: (Steve Trowbridge - EVP & CFO) Strong capital sales and probe growth, particularly for prostate treatment, are driving NanoKnife's performance. Preserve data will be released after the 12-month follow-up is completed this summer.
Q: What is the pricing strategy for AlphaVac? A: (Jim Clemmer - President & CEO) AlphaVac is uniquely designed and is expected to be priced around the $9,000 range.
This article first appeared on GuruFocus.
