AngioDynamics, a leading provider of innovative, minimally invasive medical devices for vascular access, surgery, peripheral vascular disease and oncology, reported financial results for the 2017 fiscal year third quarter ended February 28, 2017.

"The quarter demonstrates continued execution on our core imperatives to improve our operational efficiency, strengthen our balance sheet and move forward on initiatives that will enable us to deliver sustainable top line revenue growth," said Jim Clemmer, President and Chief Executive Officer of AngioDynamics. "We have already taken several positive steps to improve our operational efficiency and simplify our supply chain, and in February we made the decision to consolidate operations in Denmead, U.K. and Manchester, Ga. into our New York facilities."

Mr. Clemmer added, "As the quarter ended, we obtained CE Mark certification for the Solero Microwave Tissue Ablation System. With an initial launch in Europe in April, we await FDA approval in the U.S. which we believe will fortify our global position in the innovative ablation market. To support our long-term performance, we will remain focused on delivering high value products within growing markets by better leveraging our renewed R&D process and our existing portfolio of high value offerings like BioFlo and NanoKnife."

Third Quarter 2017 Financial Results

Net sales for the fiscal third quarter were $85.6 million compared with $87.4 million a year ago. Currency did not have an impact in the quarter.

The following comparisons exclude the Boston Scientific supply agreement.

Peripheral Vascular net sales in the third quarter were $48.5 million compared to $49.8 million in the fiscal year 2016 third quarter. Vascular Access net sales in the third quarter were $23.7 million compared to $24.9 million a year ago. Oncology/Surgery net sales in the third quarter were $13.0 million compared to $12.1 million in the fiscal year 2016 third quarter. Overall U.S. net sales in the third quarter were $67.4 million compared to $69.5 million in the year ago third quarter. Overall International net sales in the third quarter were $17.8 million compared to $17.2 million a year ago.

In the third quarter of fiscal 2017, the Company recorded net income of $2.9 million, or $0.08 on a per share basis. The Company recorded net income of $0.6 million, or $0.02 on a per share basis, in the third quarter of fiscal 2016. Excluding the items shown in the attached quarterly non-GAAP reconciliation table, adjusted net income for the third quarter of fiscal 2017 was $6.9 million, or $0.19 per share, compared to an adjusted net income of $5.4 million, or $0.15 per share, in the third quarter of fiscal 2016.

Adjusted EBITDA in the third quarter of fiscal 2017, excluding the items shown in the attached reconciliation table, was $15.5 million compared to $13.9 million in the third quarter of fiscal 2016.

In the third quarter of fiscal 2017, the Company generated $14.4 million in operating cash flow and $14.0 million in free cash flow. As of February 28, 2017, cash and cash equivalents were $35.6 million and debt was $98.8 million.

"Our commitment to prudent financial management during the quarter was evidenced by year-over-year and sequential gross margin expansion, EPS growth and strong cash flow," said Michael Greiner, Executive Vice President and Chief Financial Officer of AngioDynamics. "To further enhance our financial performance and strengthen our operations, the consolidation of our manufacturing operations, which is expected to be completed and fully integrated by the end of the third quarter of the 2018 fiscal year, will drive additional efficiencies and improve margins. We are confident that a solid operating platform and strong balance sheet will fuel our long-term growth potential."

Nine Months Financial Results

For the nine months ended February 28, 2017, net sales were $262.7 million compared to $260.5 million a year ago. The Company's net income was $17.9 million, or $0.49 per share, compared to a net loss of $0.5 million, or $0.01 per share a year ago. Excluding the items shown in the attached quarterly non-GAAP reconciliation table, adjusted net income was $20.2 million, or $0.55 per share, compared to adjusted net income of $14.4 million, or $0.40 per share, a year ago. Adjusted EBITDA, excluding the items shown in the attached reconciliation table, was $46.5 million compared to $38.9 million in the year ago period.

Fiscal Year 2017 Financial Guidance

The company is revising its FY2017 revenue guidance from a range of $355 million to $360 million to a range of $352 million to $355 million. The company is increasing its FY2017 adjusted EPS guidance from a range of $0.65 to $0.67 to a range of $0.68 to $0.70. The company's free cash flow guidance remains unchanged at greater than $35 million.