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AngioDynamics (ANGO) Q4 2024 Earnings Call Transcript

AInvestTuesday, Jul 16, 2024 8:06 pm ET
1min read

In its recent fiscal year 2024 earnings call, AngioDynamics presented a comprehensive update on its financial performance and strategic initiatives. The call, led by Jim Clemmer, President and CEO, and Steve Trowbridge, EVP and CFO, showcased the company's resilience and forward momentum, particularly in the face of recent divestitures and strategic shifts.

Financial Performance and Strategic Transformation

AngioDynamics reported total pro forma worldwide revenue of $71.1 million for the fiscal year 2024 fourth quarter, representing a 2% year-over-year growth. The company's Med Tech segment, which includes Auryon and NanoKnife, saw double-digit growth, with Auryon growing 12% and NanoKnife growing 43%. The mechanical thrombectomy business, however, experienced a 2% decline in the fourth quarter. Despite this, the company is optimistic about the recent performance of both AngioVac and AlphaVac.

The company's strategic transformation, initiated in July 2021, has focused on pursuing larger and faster growing Med Tech markets, driving portfolio optimization, and deploying focused research and development. The sale of non-core assets, such as the Dialysis and BioSentry product portfolios, PICC and Midline businesses, and the discontinued RadioFrequency and Syntrax support catheter products, have allowed AngioDynamics to streamline its portfolio and strengthen its balance sheet. The company's financial performance has been solid, with a $5 million operating cash flow and a $1.5 million adjusted EBITDA, reflecting the successful execution of these strategic initiatives.

Looking Ahead: Fiscal Year 2025 and Beyond

AngioDynamics' outlook for fiscal year 2025 is positive, with expectations for revenue growth between 4.2% and 6.4%. The company anticipates strong growth in its Med Tech segment, with a 10% to 12% increase, and a 1% to 3% increase in its Med Device segment. The focus on strategic growth markets, such as Auryon, AlphaVac, and NanoKnife, is expected to drive this growth.

The company is also preparing for key milestones in the coming year, including the potential FDA approval for NanoKnife in prostate cancer, which could significantly expand its market potential. AngioDynamics' strategic investments in R&D and regulatory approvals, particularly in Europe, are also expected to contribute to its global growth.

Key Takeaways

AngioDynamics' earnings call highlights its successful financial performance and strategic transformation, with a focus on growth in its Med Tech segment and a streamlined portfolio. The company's strong financial position, coupled with its strategic initiatives, positions it well for future growth. Key milestones, such as the potential FDA approval for NanoKnife in prostate cancer, could further bolster its market position and investor confidence.

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