AngioDynamics, Inc. — FY2021 Form 10-K
Reporting period: Fiscal year ended May 31, 2021. Although the request metadata refers to “2020 Q4,” this filing reports fiscal 2021 annual results; the supplied text does not provide a standalone fourth-quarter financial summary.
Business context
AngioDynamics designs, manufactures and sells medical devices used in vascular access, peripheral vascular disease treatment, oncology and surgery. Its three business units are Endovascular Therapies, Vascular Access and Oncology/Surgery. The company says it is shifting toward higher-technology products, including Auryon, AngioVac and NanoKnife.
Financial results and position
| Metric | FY2021 | FY2020 |
|---|---|---|
| Net sales | $291.0 million | $264.2 million |
| Gross margin | 53.9% | 56.9% |
| Operating loss | $35.3 million | $167.1 million |
| Net loss from continuing operations | $31.5 million | $166.8 million |
| Loss per diluted share | $0.82 | $4.39 |
| Cash from (used in) operations | $24.1 million | $(14.6) million |
- Sales grew 10.2%. By business unit, Endovascular Therapies rose 19.9% to $135.1 million, Vascular Access rose 7.4% to $101.3 million, and Oncology/Surgery fell 4.4% to $54.6 million.
- U.S. sales increased 14.0% to $237.0 million; international sales declined 3.9% to $54.0 million.
- Gross margin fell 300 basis points. Management cited manufacturing under-absorption and inflation, Auryon launch start-up costs, and product mix; higher sales volume partly offset these effects.
- Cash and cash equivalents were $48.2 million at year-end, down from $54.4 million. Revolver debt was $20.0 million, down from $40.0 million. The $125 million secured revolving facility had a 1.36% interest rate at May 31, 2021; the company reported covenant compliance.
- Inventory was $48.6 million versus $59.9 million a year earlier. Total assets were $561.4 million and stockholders’ equity was $439.5 million.
Changes, outlook and notable items
- The smaller reported net loss chiefly reflects the absence of the prior-year $158.6 million goodwill impairment. FY2021 included a $14.0 million impairment after management abandoned the OARtrac technology and trademark.
- COVID-19 disrupted procedures, customer access, clinical studies and hospital capital spending. Management said procedure volumes improved from pandemic lows, with Endovascular Therapies and Vascular Access performing strongest; Oncology continued to face procedure-volume and capital-spending pressure.
- A $1.9 million employee retention credit benefit was recorded under the CARES Act. Management stated that cash, operating cash generation and revolver availability were expected to meet anticipated capital needs for at least 12 months. No specific revenue or earnings guidance is provided in the supplied filing text.
- Management highlighted investment in growth products and disciplined product development, alongside cost, cash and balance-sheet management. It identified clinical evidence and market adoption as important to the prospects for Auryon, AngioVac and NanoKnife.
- Contingencies include multiple C.R. Bard patent disputes involving implantable ports and a company-initiated antitrust case against Bard, expected to proceed to trial in 2022. The company said it could not determine whether losses in the Bard cases were probable or reasonably estimable; no related expense was recorded.
- The annual goodwill test found no impairment in FY2021; goodwill was impaired by $158.6 million in FY2020. The company maintained a valuation allowance on certain deferred tax assets, citing a lack of sustained profitability.
Investor verification points
- Confirm the fiscal-year reporting period and obtain quarterly results separately if the intended comparison is FY2020 Q4.
- Assess whether sales growth and gross-margin recovery can continue after COVID-related rebounds, a one-time U.K. vascular-access order, and Auryon launch costs.
- Track clinical-trial progress, regulatory status and commercial adoption for Auryon, AngioVac and NanoKnife.
- Review the status and potential financial exposure of the Bard litigation, contingent acquisition payments and royalty commitments.
- Evaluate inventory demand assumptions, deferred-tax-asset recoverability, and liquidity against debt covenants and the company’s stated 12-month outlook.