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Form 8-K ANGIODYNAMICS INC For: Jan 07

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January 7, 2021 7:11 AM EST

Exhibit 99.1



PRESS RELEASE
Investor Contact:

AngioDynamics, Inc.
Stephen Trowbridge, Executive Vice President & CFO
(518) 795-1408

AngioDynamics Reports Fiscal 2021 Second Quarter Financial Results
Fiscal 2021 Second Quarter Highlights
•
Net sales of $72.8 million increased 4.0% compared to the prior-year quarter
•
Gross margin declined 410 basis points year over year to 55.2%
•
GAAP loss per share of $0.11 and adjusted earnings per share of $0.01
•
Cash and cash equivalents on November 30, 2020 were $58.0 million, compared to $47.9 million on August 31, 2020
•
The Company reaffirms its guidance of fiscal year 2021 net sales between $278 and $284 million and fiscal year 2021 adjusted earnings per share between $0.00 and $0.05
•
Today, the Company announced that it plans to launch its new multi-purpose mechanical aspiration thrombectomy device in calendar year 2021.


Latham, New York, January 7, 2021 – AngioDynamics, Inc. (NASDAQ: ANGO), a leading provider of innovative, minimally invasive medical devices for vascular access, peripheral vascular disease, and oncology, today announced financial results for the second quarter of fiscal year 2021, which ended November 30, 2020.

“I am very pleased with our performance in the second quarter, as sales execution and continued expense management drove strong revenue and positive earnings,” commented Jim Clemmer, President and Chief Executive Officer of AngioDynamics, Inc. “AngioVac and Auryon performed well during the quarter, as we continue to focus on growing our key technology platforms while managing expenses throughout the business. In the second half of the year, we expect ongoing COVID-related headwinds as

well as typical third-quarter seasonality, which is contemplated in our full-year guidance. We are excited about the planned launch of our multi-purpose mechanical aspiration thrombectomy device in calendar 2021, as this new member of the AngioVac platform family will position us to serve the much larger addressable market of moderately complex thrombectomy cases, while AngioVac and Uni-Fuse continue to address the complex and simple ends of the spectrum, respectively.”

Second Quarter 2021 Financial Results
 
Net sales for the second quarter of fiscal 2021 were $72.8 million, an increase of 4.0% compared to the prior-year quarter. Net sales in the second quarter continued to be impacted by the disruption to procedure volumes resulting from the COVID-19 global pandemic. Foreign currency translation did not have a significant impact on the Company’s sales in the quarter.
 
•    Vascular Interventions and Therapies (“VIT”) net sales were $33.9 million, an increase of 8.8%, compared to $31.2 million a year ago. Growth was driven by increased AngioVac sales over the previous year, partially offset by a decline in sales of Venous products resulting from lower elective procedure volumes. Auryon sales during the quarter were $2.1 million.

•    Oncology net sales were $14.9 million, a decrease of 7.0% from $16.0 million a year ago. The year-over-year decline was primarily attributable to lower capital sales, which were somewhat offset by strong growth in sales of NanoKnife disposables, particularly in the United States.
 
•    Vascular Access net sales were $23.9 million, an increase of 5.0% from $22.8 million a year ago.
 
U.S. net sales in the second quarter of fiscal 2021 were $60.7 million, an increase of 9.2% from $55.6 million a year ago. International net sales were $12.1 million in the second quarter of fiscal 2021, a decrease of 16.3% from $14.4 million a year ago.
 
Gross margin for the second quarter of fiscal 2021 was 55.2%, a decline of 410 basis points compared to the second quarter of fiscal 2020. The gross margin decline was primarily attributable to the Company’s previously discussed COVID-related operating plan. This plan included under-absorption of the Company’s manufacturing facilities related to additional COVID-related operating protocols designed to ensure supply-chain security and employee safety. Additionally, during the second quarter, inventory was reduced by $3.2 million when compared to inventory levels on August 31, 2020. Since year end, inventory levels have been reduced by $10.3 million.

The Company recorded a net loss of $4.3 million, or loss per share of $0.11, in the second quarter of fiscal 2021. This compares to net loss of approximately $2.7 million, or loss per share of $0.07, a year ago.


Excluding the items shown in the non-GAAP reconciliation table below, adjusted net income for the second quarter of fiscal 2021 was $0.6 million or adjusted earnings of $0.01 per share, compared to adjusted net income of $2.2 million, or adjusted earnings per share of $0.06, in the second quarter of fiscal 2020.
 
Adjusted EBITDA in the second quarter of fiscal 2021, excluding the items shown in the reconciliation table below, was $5.2 million, compared to $6.4 million in the second quarter of fiscal 2020.
 
In the second quarter of fiscal 2021, the Company generated $11.5 million in operating cash and had capital expenditures of $1.4 million. As of November 30, 2020, the Company had $58.0 million in cash and cash equivalents compared to $47.9 million in cash and cash equivalents on August 31, 2020. As of November 30, 2020, the Company had $40.0 million in debt outstanding, consistent with its debt balance on August 31, 2020. Subsequent to quarter end, the Company repaid $10 million of its outstanding debt. Management remains focused on cash preservation amid the current environment.

Six Months Financial Results

For the six months ended November 30, 2020:

•
Net sales were $143.0 million, an increase of 5.1%, compared to $136.0 million for the same period a year ago.

•
The Company's net loss was $9.0 million, or a loss of $0.22 per share, compared to a net loss of $4.0 million, or a loss of $0.11 per share, a year ago.

•
Gross margin decreased 550 basis points to 53.1% from 58.6% a year ago due to the Company’s previously discussed COVID-related operating plan.

•
Excluding the items shown in the non-GAAP reconciliation table below, adjusted net income was $1.2 million, or $0.03 per share, compared to adjusted net income of $5.3 million, or $0.14 per share, a year ago.

•
Adjusted EBITDA, excluding the items shown in the reconciliation table below, was $9.6 million, compared to $13.7 million for the same period a year ago.

Fiscal Year 2021 Financial Guidance

The Company continues to expect fiscal year 2021 net sales in the range of $278 to $284 million and fiscal year 2021 adjusted earnings per share in the range of $0.00 to $0.05.


Conference Call
 
The Company’s management will host a conference call today at 8:00 a.m. ET to discuss its fiscal 2021 second quarter results.
 
To participate in the conference call, dial 1-877-407-0784 (domestic) or +1-201-689-8560 (international) and refer to the passcode 13714154.

This conference call will also be webcast and can be accessed from the “Investors” section of the AngioDynamics website at www.angiodynamics.com. The webcast replay of the call will be available at the same site approximately one hour after the end of the call.

A recording of the call will also be available from 11:00 a.m. ET on Thursday, January 7, 2021, until 11:59 p.m. ET on Thursday, January 14, 2021. To hear this recording, dial 1-844-512-2921 (domestic) or +1-412-317-6671 (international) and enter the passcode 13714154.

Use of Non-GAAP Measures
 
Management uses non-GAAP measures to establish operational goals and believes that non-GAAP measures may assist investors in analyzing the underlying trends in AngioDynamics' business over time. Investors should consider these non-GAAP measures in addition to, not as a substitute for or as superior to, financial reporting measures prepared in accordance with GAAP. In this news release, AngioDynamics has reported adjusted EBITDA, adjusted net income, adjusted earnings per share, and free cash flow. Management uses these measures in its internal analysis and review of operational performance. Management believes that these measures provide investors with useful information in comparing AngioDynamics' performance over different periods. By using these non-GAAP measures, management believes that investors get a better picture of the performance of AngioDynamics' underlying business. Management encourages investors to review AngioDynamics' financial results prepared in accordance with GAAP to understand AngioDynamics' performance taking into account all relevant factors, including those that may only occur from time to time but have a material impact on AngioDynamics' financial results. Please see the tables that follow for a reconciliation of non-GAAP measures to measures prepared in accordance with GAAP.
 
About AngioDynamics, Inc.
 
AngioDynamics, Inc. is a leading provider of innovative, minimally invasive medical devices used by professional healthcare providers for vascular access, peripheral vascular disease, and oncology. AngioDynamics’ diverse product lines include market-leading ablation systems, vascular access products, angiographic products and accessories, drainage products, thrombolytic products and venous products. For more information, visit www.angiodynamics.com.


Safe Harbor
 
This release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. All statements regarding AngioDynamics' expected future financial position, results of operations, cash flows, business strategy, budgets, projected costs, capital expenditures, products, competitive positions, growth opportunities, plans and objectives of management for future operations, as well as statements that include the words such as "expects," "reaffirms," "intends," "anticipates," "plans," "believes," "seeks," "estimates," "optimistic," or variations of such words and similar expressions, are forward-looking statements. These forward-looking statements are not guarantees of future performance and are subject to risks and uncertainties. Investors are cautioned that actual events or results may differ from AngioDynamics' expectations. Factors that may affect the actual results achieved by AngioDynamics include, without limitation, the scale and scope of the COVID-19 global pandemic, the ability of AngioDynamics to develop its existing and new products, technological advances and patents attained by competitors, infringement of AngioDynamics' technology or assertions that AngioDynamics' technology infringes the technology of third parties, the ability of AngioDynamics to effectively compete against competitors that have substantially greater resources, future actions by the FDA or other regulatory agencies, domestic and foreign health care reforms and government regulations, results of pending or future clinical trials, overall economic conditions, the results of on-going litigation, challenges with respect to third-party distributors or joint venture partners or collaborators, the results of sales efforts, the effects of product recalls and product liability claims, changes in key personnel, the ability of AngioDynamics to execute on strategic initiatives, the effects of economic, credit and capital market conditions, general market conditions, market acceptance, foreign currency exchange rate fluctuations, the effects on pricing from group purchasing organizations and competition, the ability of AngioDynamics to integrate acquired businesses, as well as the risk factors listed from time to time in AngioDynamics' SEC filings, including but not limited to its Annual Report on Form 10-K for the year ended May 31, 2020. AngioDynamics does not assume any obligation to publicly update or revise any forward-looking statements for any reason.
 
In the United States, the NanoKnife System has received a 510(k) clearance by the Food and Drug Administration for use in the surgical ablation of soft tissue and is similarly approved for commercialization in Canada, the European Union, and Australia. The NanoKnife System has not been cleared for the treatment or therapy of a specific disease or condition.




ANGIODYNAMICS, INC. AND SUBSIDIARIES
CONSOLIDATED INCOME STATEMENTS
(in thousands, except per share data)

 
Three Months Ended
  
Six months ended
 
Nov 30, 2020
  
Nov 30, 2019
  
Nov 30, 2020
  
Nov 30, 2019
 
(unaudited)
  
(unaudited)
               
Net sales
$
72,770 
    
$
70,003 
    
$
142,986 
    
$
136,045 
  
Cost of sales (exclusive of intangible amortization)
32,596 
    
28,459 
    
67,048 
    
56,284 
  
Gross profit
40,174 
    
41,544 
    
75,938 
    
79,761 
  
% of net sales
55.2 
%
  
59.3 
%
  
53.1 
%
  
58.6 
%
               
Operating expenses
              
Research and development
9,712 
    
7,764 
    
18,721 
    
14,055 
  
Sales and marketing
20,174 
    
20,113 
    
37,879 
    
39,493 
  
General and administrative
9,219 
    
10,994 
    
17,776 
    
19,448 
  
Amortization of intangibles
4,593 
    
4,530 
    
9,546 
    
8,398 
  
Change in fair value of contingent consideration
184 
    
145 
    
(473)
    
(303)
  
Acquisition, restructuring and other items, net
1,128 
    
1,421 
    
2,447 
    
2,921 
  
Total operating expenses
45,010 
    
44,967 
    
85,896 
    
84,012 
  
Operating loss
(4,836)
    
(3,423)
    
(9,958)
    
(4,251)
  
Interest expense, net
(235)
    
(41)
    
(450)
    
(506)
  
Other income (expense), net
(102)
    
162 
    
422 
    
64 
  
Total other income (expense), net
(337)
    
121 
    
(28)
    
(442)
  
Loss before income tax benefit
(5,173)
    
(3,302)
    
(9,986)
    
(4,693)
  
Income tax benefit
(905)
    
(566)
    
(1,450)
    
(682)
  
Net loss
$
(4,268)
    
$
(2,736)
    
$
(8,536)
    
$
(4,011)
  
               
Loss per share
              
Basic
$
(0.11)
    
$
(0.07)
    
$
(0.22)
    
$
(0.11)
  
Diluted
$
(0.11)
    
$
(0.07)
    
$
(0.22)
    
$
(0.11)
  
               
Weighted average shares outstanding
              
Basic
38,327 
    
37,992 
    
38,242 
    
37,887 
  
Diluted
38,327 
    
37,992 
    
38,242 
    
37,887 
  



ANGIODYNAMICS, INC. AND SUBSIDIARIES
GAAP TO NON-GAAP RECONCILIATION
(in thousands, except per share data)

Reconciliation of Net Loss to non-GAAP Adjusted Net Income:
        
               
 
Three Months Ended
  
Six months ended
 
Nov 30, 2020
  
Nov 30, 2019
  
Nov 30, 2020
  
Nov 30, 2019
 
(unaudited)
  
(unaudited)
               
Net loss
$
(4,268)
    
$
(2,736)
    
$
(8,536)
    
$
(4,011)
  
               
Amortization of intangibles
4,593 
    
4,530 
    
9,546 
    
8,398 
  
Change in fair value of contingent consideration
184 
    
145 
    
(473)
    
(303)
  
Acquisition, restructuring and other items, net (1)
1,128 
    
1,421 
    
2,447 
    
2,921 
  
Write-off of deferred financing fees (2)
— 
    
— 
    
— 
    
593 
  
Tax effect of non-GAAP items (3)
(1,073)
    
(1,209)
    
(1,803)
    
(2,273)
  
Adjusted net income
$
564 
    
$
2,151 
    
$
1,181 
    
$
5,325 
  
               
Reconciliation of Diluted Loss Per Share to non-GAAP Adjusted Diluted Earnings Per Share:
               
 
Three Months Ended
  
Six months ended
 
Nov 30, 2020
  
Nov 30, 2019
  
Nov 30, 2020
  
Nov 30, 2019
 
(unaudited)
  
(unaudited)
               
Diluted loss per share
$
(0.11)
    
$
(0.07)
    
$
(0.22)
    
$
(0.11)
  
               
Amortization of intangibles
0.12 
    
0.12 
    
0.25 
    
0.22 
  
Change in fair value of contingent consideration
— 
    
— 
    
(0.01)
    
(0.01)
  
Acquisition, restructuring and other items, net (1)
0.03 
    
0.04 
    
0.06 
    
0.08 
  
Write-off of deferred financing fees (2)
— 
    
— 
    
— 
    
0.02 
  
Tax effect of non-GAAP items (3)
(0.03)
    
(0.03)
    
(0.05)
    
(0.06)
  
Adjusted diluted earnings per share
$
0.01 
    
$
0.06 
    
$
0.03 
    
$
0.14 
  
               
Adjusted diluted sharecount
38,473
  
38,092
  
38,503
  
38,120

(1)  Includes costs related to merger and acquisition activities, restructuring, and unusual items, including asset impairments and write-offs, certain litigation, and other items.
(2)  Deferred financing fees related to the old credit agreement were written off during the first quarter of fiscal year 2020.
(3)  Adjustment to reflect the income tax provision on a non-GAAP basis has been calculated assuming no valuation allowance on the Company's U.S. deferred tax assets and an effective tax rate of 23% for November 30, 2020 and 2019.

ANGIODYNAMICS, INC. AND SUBSIDIARIES
GAAP TO NON-GAAP RECONCILIATION (Continued)
(in thousands, except per share data)

Reconciliation of Net Loss to Adjusted EBITDA:
                
                 
 
Three Months Ended
  
Six months ended
  
 
Nov 30, 2020
  
Nov 30, 2019
  
Nov 30, 2020
  
Nov 30, 2019
  
 
(unaudited)
  
(unaudited)
  
                 
Net loss
$
(4,268)
    
$
(2,736)
    
$
(8,536)
    
$
(4,011)
    
                 
Income tax benefit
(905)
    
(566)
    
(1,450)
    
(682)
    
Interest expense, net
235 
    
41 
    
450 
    
506 
    
Depreciation and amortization
6,397 
    
5,863 
    
12,936 
    
11,033 
    
Change in fair value of contingent consideration
184 
    
145 
    
(473)
    
(303)
    
Stock based compensation
2,387 
    
2,242 
    
4,251 
    
4,226 
    
Acquisition, restructuring and other items, net (1)
1,128 
    
1,421 
    
2,447 
    
2,921 
    
Adjusted EBITDA
$
5,158 
    
$
6,410 
    
$
9,625 
    
$
13,690 
    
                 
Per diluted share:
                
Adjusted EBITDA
$
0.13 
    
$
0.17 
    
$
0.25 
    
$
0.36 
    
                 
(1)  Includes costs related to merger and acquisition activities, restructuring, and unusual items, including asset impairments and write-offs, certain litigation, and other items.


ANGIODYNAMICS, INC. AND SUBSIDIARIES
NET SALES BY PRODUCT CATEGORY AND BY GEOGRAPHY
(in thousands)

 
Three Months Ended
  
                        Six months ended
 
Nov 30, 2020
  
Nov 30, 2019
  
% Growth
  
Currency Impact
  
Constant Currency Growth
  
Nov 30, 2020
  
Nov 30, 2019
  
% Growth
  
Currency Impact
  
Constant Currency Growth
                 
 
(unaudited)
                
(unaudited)
            
Net Sales by Product Category
                              
Vascular Interventions & Therapies
$
33,900 
    
$
31,150 
    
8.8%
          
$
63,757 
    
$
60,063 
    
6.2%
        
Vascular Access
23,930 
    
22,784 
    
5.0%
          
52,035 
    
45,943 
    
13.3%
        
Oncology
14,940 
    
16,069 
    
(7.0)%
          
27,194 
    
30,039 
    
(9.5)%
        
 
$
72,770 
    
$
70,003 
    
4.0%
  
(0.3)%
  
3.7%
  
$
142,986 
    
$
136,045 
    
5.1%
  
(0.2)%
  
4.9%
 
— 
    
— 
                                  
                                       
Net Sales by Geography
                              
United States
$
60,684 
    
$
55,555 
    
9.2%
          
$
114,792 
    
$
108,492 
    
5.8%
        
International
12,086 
    
14,448 
    
(16.3)%
  
(1.3)%
  
(17.6)%
  
28,194 
    
27,553 
    
2.3%
  
(0.8)%
  
1.5%
 
$
72,770 
    
$
70,003 
    
4.0%
  
(0.3)%
  
3.7%
  
$
142,986 
    
$
136,045 
    
5.1%
  
(0.2)%
  
4.9%
                                       


ANGIODYNAMICS, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(in thousands)

 
Nov 30, 2020
  
May 31, 2020
 
(unaudited)
  
(audited)
Assets
      
Current assets:
      
Cash and cash equivalents
$
58,025 
    
$
54,435 
  
Accounts receivable, net
33,604 
    
31,263 
  
Inventories
49,582 
    
59,905 
  
Prepaid expenses and other
8,493 
    
7,310 
  
Total current assets
149,704 
    
152,913 
  
Property, plant and equipment, net
29,628 
    
28,312 
  
Other assets
17,513 
    
15,338 
  
Intangible assets, net
190,559 
    
197,136 
  
Goodwill
201,117 
    
200,515 
  
Total assets
$
588,521 
    
$
594,214 
  
Liabilities and stockholders' equity
      
Current liabilities:
      
Accounts payable
$
15,979 
    
$
19,096 
  
Accrued liabilities
27,610 
    
29,380 
  
Current portion of contingent consideration
— 
    
836 
  
Other current liabilities
2,223 
    
2,133 
  
Total current liabilities
45,812 
    
51,445 
  
Long-term debt, net of current portion
40,000 
    
40,000 
  
Contingent consideration, net of current portion
15,178 
    
14,811 
  
Deferred income taxes
23,018 
    
24,057 
  
Other long-term liabilities
10,170 
    
9,029 
  
Total liabilities
134,178 
    
139,342 
  
Stockholders' equity
454,343 
    
454,872 
  
Total Liabilities and Stockholders' Equity
$
588,521 
    
$
594,214 
  
       


ANGIODYNAMICS, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)

 
Three Months Ended
  
Six months ended
 
Nov 30, 2020
  
Nov 30, 2019
  
Nov 30, 2020
  
Nov 30, 2019
 
(unaudited)
  
(unaudited)
Cash flows from operating activities:
              
Net loss
$
(4,268)
    
$
(2,736)
    
$
(8,536)
    
$
(4,011)
  
Adjustments to reconcile net loss to net cash provided by (used in) operating activities:
              
Depreciation and amortization
6,436 
    
5,903 
    
13,013 
    
11,110 
  
Non-cash lease expense
599 
    
904 
    
1,265 
    
904 
  
Stock based compensation
2,387 
    
2,242 
    
4,251 
    
4,226 
  
Change in fair value of contingent consideration
184 
    
145 
    
(473)
    
(303)
  
Deferred income taxes
(933)
    
(559)
    
(1,553)
    
(734)
  
Change in accounts receivable allowances
(431)
    
652 
    
29 
    
199 
  
Fixed and intangible asset impairments and disposals
90 
    
270 
    
180 
    
369 
  
                Write-off of other assets
— 
    
— 
    
— 
    
593 
  
Other
202 
    
(19)
    
(230)
    
(27)
  
Changes in operating assets and liabilities, net of acquisitions:
              
Accounts receivable
425 
    
(2,010)
    
(2,281)
    
9,464 
  
Inventories
3,281 
    
(4,856)
    
10,528 
    
(10,009)
  
Prepaid expenses and other
(2,764)
    
(2,798)
    
(6,323)
    
(3,544)
  
Accounts payable, accrued and other liabilities
6,240 
    
8,799 
    
(3,847)
    
(8,834)
  
Net cash provided by (used in) operating activities
11,448 
    
5,937 
    
6,023 
    
(597)
  
Cash flows from investing activities:
              
Additions to property, plant and equipment
(1,361)
    
(2,623)
    
(3,185)
    
(4,014)
  
Acquisition of intangibles
— 
    
(200)
    
— 
    
(350)
  
Cash paid in acquisition
— 
    
(45,760)
    
— 
    
(45,760)
  
Net cash used in investing activities
(1,361)
    
(48,583)
    
(3,185)
    
(50,124)
  
Cash flows from financing activities:
              
Repayment of long-term debt
— 
    
— 
    
— 
    
(132,500)
  
Deferred financing costs on long-term debt
— 
    
— 
    
— 
    
(741)
  
Payment of acquisition related contingent consideration
— 
    
— 
    
— 
    
(1,208)
  
Proceeds (outlays) from exercise of stock options and employee stock purchase plan
(10)
    
— 
    
481 
    
(1,300)
  
Net cash provided by (used in) financing activities
(10)
    
— 
    
481 
    
(135,749)
  
Effect of exchange rate changes on cash and cash equivalents
19 
    
244 
    
271 
    
76 
  
Increase (decrease) in cash and cash equivalents
10,096 
    
(42,402)
    
3,590 
    
(186,394)
  
Cash and cash equivalents at beginning of period
47,929 
    
83,649 
    
54,435 
    
227,641 
  
Cash and cash equivalents at end of period
$
58,025 
    
$
41,247 
    
$
58,025 
    
$
41,247 
  



ANGIODYNAMICS, INC. AND SUBSIDIARIES
GAAP TO NON-GAAP RECONCILIATION
(in thousands)

Reconciliation of Free Cash Flows:
        
 
Three Months Ended
  
Six months ended
 
Nov 30, 2020
  
Nov 30, 2019
  
Nov 30, 2020
  
Nov 30, 2019
 
(unaudited)
  
(unaudited)
               
Net cash provided by (used in) operating activities
$
11,448 
    
$
5,937 
    
$
6,023 
    
$
(597)
  
Additions to property, plant and equipment
(1,361)
    
(2,623)
    
(3,185)
    
(4,014)
  
     Free Cash Flow
$
10,087 
    
$
3,314 
    
$
2,838 
    
$
(4,611)
  
               









Exhibit 99.2

 ANGIODYNAMICS  Second Quarter 2021 Earnings PresentationJanuary 7, 2021  1 
 
 2  Forward-Looking Statement  Notice Regarding Forward-Looking StatementsThis presentation contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. All statements regarding AngioDynamics’ expected future financial position, results of operations, cash flows, business strategy, budgets, projected costs, capital expenditures, products, competitive positions, growth opportunities, plans and objectives of management for future operations, as well as statements that include the words such as “expects,” “reaffirms,” “intends,” “anticipates,” “plans,” “believes,” “seeks,” “estimates,” “optimistic,” or variations of such words and similar expressions, are forward-looking statements. These forward-looking statements are not guarantees of future performance and are subject to risks and uncertainties. Investors are cautioned that actual events or results may differ from AngioDynamics’ expectations. Factors that may affect the actual results achieved by AngioDynamics include, without limitation, the scale and scope of the COVID-19 global pandemic, the ability of AngioDynamics to develop its existing and new products, technological advances and patents attained by competitors, infringement of AngioDynamics’ technology or assertions that AngioDynamics’ technology infringes the technology of third parties, the ability of AngioDynamics to effectively compete against competitors that have substantially greater resources, future actions by the FDA or other regulatory agencies, domestic and foreign health care reforms and government regulations, results of pending or future clinical trials, overall economic conditions, the results of on-going litigation, challenges with respect to third-party distributors or joint venture partners or collaborators, the results of sales efforts, the effects of product recalls and product liability claims, changes in key personnel, the ability of AngioDynamics to execute on strategic initiatives, the effects of economic, credit and capital market conditions, general market conditions, market acceptance, foreign currency exchange rate fluctuations, the effects on pricing from group purchasing organizations and competition, the ability of AngioDynamics to integrate acquired businesses, as well as the risk factors listed from time to time in AngioDynamics’ SEC filings, including but not limited to its Annual Report on Form 10-K for the year ended May 31, 2020. AngioDynamics does not assume any obligation to publicly update or revise any forward-looking statements for any reason.In the United States, the NanoKnife System has received a 510(k) clearance by the Food and Drug Administration for use in the surgical ablation of soft tissue, and is similarly approved for commercialization in Canada, the European Union and Australia. The NanoKnife System has not been cleared for the treatment or therapy of a specific disease or condition.Notice Regarding Non-GAAP Financial MeasuresManagement uses non-GAAP measures to establish operational goals and believes that non-GAAP measures may assist investors in analyzing the underlying trends in AngioDynamics’ business over time. Investors should consider these non-GAAP measures in addition to, not as a substitute for or as superior to, financial reporting measures prepared in accordance with GAAP. In this presentation, AngioDynamics has reported adjusted EBITDA (income before interest, taxes, depreciation and amortization and stock-based compensation); adjusted net income; adjusted earnings per share and free cash flow. Management uses these measures in its internal analysis and review of operational performance. Management believes that these measures provide investors with useful information in comparing AngioDynamics’ performance over different periods. By using these non-GAAP measures, management believes that investors get a better picture of the performance of AngioDynamics’ underlying business. Management encourages investors to review AngioDynamics’ financial results prepared in accordance with GAAP to understand AngioDynamics’ performance taking into account all relevant factors, including those that may only occur from time to time but have a material impact on AngioDynamics’ financial results. Please see the tables that follow for a reconciliation of non-GAAP measures to measures prepared in accordance with GAAP. 
 
   Corporate Developments  FY2021 Guidance  3                  NanoKnife disposable growth was 76% in the U.S. and 30% worldwide. Growth in AngioVac was 24%, and we achieved $2.1 million in Auryon sales.   Procedural volumes continued to rebound in the second quarter and reflect less severe declines than the 10-15% decline discussed in the first quarter. We expect that the third quarter is likely to see a more pronounced impact from COVID related headwinds along with typical third quarter seasonality.  We continued our focused investment in our three key technology platforms: NanoKnife, AngioVac and Auryon. Within our Thrombus Management portfolio we are progressing toward the planned launch of a multi-purpose mechanical aspiration thrombectomy device in calendar 2021.  NanoKnife DIRECT study: 26 sites have secured IRB approval, up from 23 at the end of the first quarter.  Reaffirm FY2021 Guidance  Revenue$278 - $284 million  Adjusted EPS$0.00 - $0.05      $10 million was paid down on the revolver in December 2020.  Pathfinder study: 9 sites have been initiated and are enrolling subjects. As of today, we are approximately 75% of the way toward our enrollment target and expect enrollment to be completed by the end of the 3rd quarter.  
 
 Second Quarter FY2021 Highlights  $ in thousands (except per share data)  Q2 FY2021  Q2 FY2020  YOY Change  Revenue  $72,770  $70,003  4.0%  Gross Margin  55.2%  59.3%  (410 bps)  Adjusted EPS  $0.01  $0.06  ($0.05)  Adjusted EBITDA  $5,158  $6,410  ($1,252)  Cash Provided by Operations  $11,448  $5,937  $5,511  Free Cash Flow  $10,087  $3,314  $6,773  Financial Performance  Vascular Interventions and Therapies  Q2 FY2021  YTD FY2021  AngioVac®  24%  34%  Auryon  NA  NA  Thrombolytic  4%  (2%)  Core Peripheral  4%  2%  Venous Insufficiency  11%  (13%)  Product Family Sales Growth  Vascular Access  Q2 FY2021  YTD FY2021  Midlines  17%  53%  C3  NA  NA  PICCs  2%  24%  Ports  3%  (1%)  Dialysis  6%  2%  Oncology  Q2 FY2021  YTD FY2021  NanoKnife® Capital  (50%)  (56%)  NanoKnife® Disposables  30%  12%  Solero® Microwave  7%  7%  BioSentry  28%  28%  Alatus and IsoLoc Balloons  (22%)  (27%)  RadioFrequency Ablation  (19%)  (24%) 
 
 Second Quarter FY2021 Results (unaudited)  $ in thousands (except per share data)  Q2 FY2021  Q2 FY2020  Change  YTD FY2021  YTD FY2020  Change  Revenue Vascular Interventions and Therapies Vascular Access Oncology United States International  $72,770$33,900$23,930$14,940$60,684$12,086  $70,003$31,150$22,784$16,069$55,555$14,448  4.0%8.8%5.0%(7.0%)9.2%(16.3%)  $142,986$63,757$52,035$27,194$114,792$28,194  $136,045$60,063$45,943$30,039$108,492$27,553  5.1%6.2%13.3%(9.5%)5.8%2.3%  Net LossNon-GAAP Adjusted Net Income  ($4,268)$564  ($2,736)$2,151  ($1,532)($1,587)  ($8,536)$1,181  ($4,011)$5,325  ($4,525)($4,144)  GAAP EPSNon-GAAP Adjusted EPS  ($0.11)$0.01  ($0.07)$0.06  ($0.04)($0.05)  ($0.22)$0.03  ($0.11)$0.14  ($0.11)($0.11)  Gross Margin  55.2%  59.3%  410 bps  53.1%  58.6%  550 bps  Adjusted EBITDA  $5,158  $6,410  ($1,252)  $9,625  $13,690  ($4,065)  Free Cash Flow  $10,087  $3,314  $6,773  $2,838  ($4,611)  $7,449  $ in thousands (except per share data)  Q2 FY2021  Q4 FY2020  Change  Cash  $58,025  $54,435  $3,590  Debt  $40,000  $40,000  $0  5 
 
 GAAP to Non-GAAP Reconciliation  6 
 
   Reconciliation of GAAP to Non-GAAP Net Income (Loss) and EPS  Reconciliation of Net Loss to Adjusted EBITDA  Includes costs related to merger and acquisition activities, restructurings, and unusual items, including asset impairments and write-offs, certain litigation, and other items.Deferred financing fees related to the old credit agreement were written off during the second quarter of fiscal year 2020.Adjustment to reflect the income tax provision on a non-GAAP basis has been calculated assuming no valuation allowance on the Company's U.S. deferred tax assets and an effective tax rate of 23% for November 30, 2020 and 2019.  7 
 
 ANGIODYNAMICS  Thrombus Management Portfolio Update   8 
 
 9  Deep Vein ThrombosisDVT  +  Pulmonary EmbolismPE  =  Venous ThromboembolismVTE  A blood clot that forms in a deep vein, usually the leg, groin or arm  A DVT breaks free from a vein wall and travels to the lungs blocking some or all of the blood supply  DVT and PE are collectively referred to as VTE  208,000 Iliofemoral Cases1  171,000 High-risk & intermediate-risk PE Cases1  100,000 – 300,000 VTE-Related Deaths in the USA Annually2      Stages of Clot  Clot in Transit (traveling through the heart)  Clot in Pulmonary Arteries (PE)          1. Plovanic, W. J., & Furlong, C. (2020, June). Inari Medical Biomedical Devices and Services. Canaccord Genuity Capital Markets.2. “Venous Thromboembolism (VTE).” World Thrombosis Day, www.worldthrombosisday.org/issue/vte. Illustrations and Images not Produced by AngioDynamics Include:https://www.vascularmedcure.com/disease-backgroundDVT (Blood Clot In the Leg): 7 Warning Signs and Symptoms (emedicinehealth.com) 
 
                                                                                                                             THROMBUS MANAGEMENTPurpose Built Portfolio & Technology  10  Right Heart  AngioVac’s use is currently focused on the Right Heart, which is a $77M addressable market.  Pulmonary Embolism  Deep Vein Thrombosis  A multi-purpose mechanical aspiration device will allow us to compete in the broader DVT & PE addressable markets with a first-line treatment option without the need for perfusion.    C U R R E N T P O R T F O L I O  F U T U R E P O R T F O L I O    DVT & PE  Uni-Fuse+ catheter directed thrombolysis now has the additional indication for placement in the pulmonary artery.  C U R R E N T P O R T F O L I O  SIMPLE  COMPLEX  MODERATE  $3B  $77M2  $1.3B1  $1.6B1  PULMONARYEMBOLISM  RIGHT HEART  DEEP VEIN THROMBOSIS  Plovanic, W. J., & Furlong, C. (2020, June). Inari Medical Biomedical Devices and Services. Canaccord Genuity Capital Markets. Fletcher Spaght, Inc. AngioVac market assessment March 2018, Angiodynamics funded  Planned Launch Calendar 2021 
 
   The   Difference   The AngioVac System allows for the continuous aspiration of embolic material such as fresh, soft thrombi or vegetation from the venous systemUtilizing a self-expanding, nitinol reinforced funnel tipSimultaneously reinfusing the patient’s own filtered blood to limit procedural blood loss        Centrifugal Pump Console  Waste Collection System  Filter  Saline  AngioVac Cannula  Reinfusion Cannula  AngioVac Circuit  Individual experience may not be indicative of all procedure results.  11 
 
         THROMBUS MANAGEMENTPlanned Portfolio Additions & U.S. Addressable Markets Expansion  12  $1.3B  $1.6B  FY 2021  FY 2022  FY 2023  FY 2025  FY 2024  Q1  Q2  Q3  Q4  Q1  Q2  Q3  Q4  Q1  Q2  Q3  Q4  Q1  Q2  Q3  Q4  Q1  Q2  Q3  Q4  $140M  $700M   $3.6B  $1.5B  1  2  The planned portfolio additions are not guarantees of future performance and are subject to risks and uncertainties. Investors are cautioned that actual events or results may differ from AngioDynamics’ expectations.  Controlled  Powerful  Versatile   Gen 3Right Heart, Illio-caval DVT  Multi-Purpose Mechanical Aspiration Gen 1Entry into Ilio-femoral DVT  Multi-Purpose Mechanical Aspiration Gen 2Access to full Ilio-femoral DVT market    Gen 4 Smaller size should drive further adoption in addressable market   Multi-Purpose Mechanical AspirationPE Indication  THE NEXT PORTFOLIO INNOVATION A purpose-built, innovative product leveraging the strengths of the AngioVac cannula technology with off-circuit manual aspiration control  Proven, funnel tip design allows efficient aspiration and compression of large clot burden  Designed to allow the end-user command and control of the mechanical aspiration  Broadens our Thrombus Management portfolio and designed to provide an intuitive, first-line treatment option without the need for lytics and advanced procedural support 
 
 ANGIODYNAMICS  Second Quarter 2021 Earnings PresentationJanuary 7, 2021  13 
 


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