EX-99.1 3 brhc20054314_ex99-1.htm EXHIBIT 99.1
Exhibit 99.1

AngioDynamics, Inc.
Unaudited Pro Forma Condensed Consolidated Financial Statements

AngioDynamics, Inc. and Subsidiaries
UNAUDITED PRO FORMA CONSOLIDATED STATEMENTS OF OPERATIONS
Nine Months Ended February 28, 2023
(in thousands of dollars, except per share data)

   
As Reported (a)
    
Pro Forma Adjustments
  
Notes
  
As Adjusted
  
Net sales
  
$
247,678
    
$
(23,690
)
 (b)
  
$
223,988
  
Cost of sales (exclusive of intangible amortization)
    
119,791
      
(9,322
)
 (b)
    
110,469
  
Gross profit
    
127,887
      
(14,368
)
      
113,519
  
Operating expenses:
                          
Research and development
    
22,023
      
(167
)
 (b)
    
21,856
  
Sales and marketing
    
77,956
      
(45
)
 (b)
    
77,911
  
General and administrative
    
29,775
      
8
  
 (b)
    
29,783
  
Amortization of intangibles
    
14,384
      
(1,450
)
 (b)
    
12,934
  
Change in fair value of contingent consideration
    
2,084
      
-
        
2,084
  
Acquisition, restructuring and other items, net
    
12,009
      
(17
)
 (b)
    
11,992
  
Total operating expenses
    
158,231
      
(1,671
)
      
156,560
  
Operating loss
    
(30,344
)
    
(12,697
)
      
(43,041
)
Other expense:
                          
Interest expense, net
    
(1,801
)
    
-
        
(1,801
)
Other expense, net
    
(427
)
    
-
        
(427
)
Total other expense, net
    
(2,228
)
    
-
        
(2,228
)
Loss before income tax benefit
    
(32,572
)
    
(12,697
)
      
(45,269
)
Income tax benefit
    
(1,597
)
    
-
  
 (c)
    
(1,597
)
Net loss
  
$
(30,975
)
  
$
(12,697
)
    
$
(43,672
)
Loss per share
                          
Basic
  
$
(0.79
)
             
$
(1.11
)
Diluted
  
$
(0.79
)
             
$
(1.11
)
Weighted average shares outstanding
                          
Basic
    
39,436
                
39,436
  
Diluted
    
39,436
                
39,436
  

AngioDynamics, Inc. and Subsidiaries
UNAUDITED PRO FORMA CONSOLIDATED STATEMENTS OF OPERATIONS
Year Ended May 31, 2022
(in thousands of dollars, except per share data)

   
As Reported (a)
    
Pro Forma Adjustments
  
Notes
  
As Adjusted
  
Net sales
  
$
316,219
    
$
(27,694
)
 (b)
  
$
288,525
  
Cost of sales (exclusive of intangible amortization)
  
150,487
    
(10,472
)
 (b)
    
140,015
  
Gross profit
  
165,732
    
(17,222
)
      
148,510
  
Operating expenses:
  
     
             
Research and development
  
30,739
    
(347
)
 (b)
    
30,392
  
Sales and marketing
  
95,301
    
(85
)
 (b)
    
95,216
  
General and administrative
  
38,451
    
-
        
38,451
  
Amortization of intangibles
  
19,458
      
(1,820
)
 (b)
    
17,638
  
Change in fair value of contingent consideration
  
1,212
      
-
        
1,212
  
Acquisition, restructuring and other items, net
  
9,042
      
(69
)
 (b)
    
8,973
  
Total operating expenses
  
194,203
      
(2,321
)
      
191,882
  
Operating loss
  
(28,471
)
    
(14,901
)
      
(43,372
)
Other expense:
  
                     
Interest expense, net
  
(688
)
    
-
        
(688
)
Other expense, net
  
(790
)
    
-
        
(790
)
Total other expense, net
  
(1,478
)
    
-
        
(1,478
)
Loss before income tax benefit
  
(29,949
)
    
(14,901
)
      
(44,850
)
Income tax benefit
  
(3,402
)
    
-
  
 (c)
    
(3,402
)
Net loss
  
$
(26,547
)
  
$
(14,901
)
    
$
(41,448
)
Loss per share
  
                     
Basic
  
$
(0.68
)
             
$
(1.06
)
Diluted
  
$
(0.68
)
             
$
(1.06
)
Weighted average shares outstanding
  
                     
Basic
  
39,009
                
39,009
  
Diluted
  
39,009
                
39,009
  

AngioDynamics, Inc. and Subsidiaries
UNAUDITED PRO FORMA CONSOLIDATED BALANCE SHEET
As of February 28, 2023
(in thousands, except share data)
 
   
As Reported (a)
    
Pro Forma Adjustments
  
Notes
  
As Adjusted
  
Assets
                    
Current assets
                    
Cash and cash equivalents
  
$
30,111
    
$
46,790
  
 (d)
  
$
76,901
  
Accounts receivable, net of allowances of $2,030
    
50,892
      
-
        
50,892
  
Inventories
    
63,532
      
(3,663
)
 (e)
    
59,869
  
Prepaid expenses and other
    
8,039
      
(1,807
)
 (e)
    
6,232
  
Total current assets
    
152,574
      
41,320
        
193,894
  
Property, plant and equipment, net
    
45,559
      
(52
)
 (e)
    
45,507
  
Intangible assets, net
    
134,011
      
(18,113
)
 (e)
    
115,898
  
Goodwill
    
199,976
      
-
        
199,976
  
Other assets
    
10,729
      
-
        
10,729
  
Total assets
  
$
542,849
    
$
23,155
      
$
566,004
  
Liabilities and stockholders' equity
                          
Current liabilities
                          
Accounts payable
  
$
35,600
    
$
-
      
$
35,600
  
Accrued liabilities
    
21,775
      
-
        
21,775
  
Current portion of contingent consideration
    
9,877
      
-
        
9,877
  
Other current liabilities
    
2,380
      
-
        
2,380
  
Total current liabilities
    
69,632
      
-
        
69,632
  
Long-term debt
    
49,807
      
(49,807
)
 (d)
    
-
  
Deferred income taxes
    
13,490
      
-
  
 (c)
    
13,490
  
Contingent consideration, net of current portion
    
9,182
      
-
        
9,182
  
Other long-term liabilities
    
3,083
      
-
        
3,083
  
Total liabilities
    
145,194
      
(49,807
)
      
95,387
  
                           
Stockholders' equity
                          
Preferred stock, par value $.01 per share, 5,000,000 shares authorized; no shares issued and outstanding
    
-
      
-
        
-
  
Common stock, par value $.01 per share, 75,000,000 shares authorized; 39,976,422 shares issued and 39,606,422 shares outstanding
    
382
      
-
        
382
  
Additional paid-in capital
    
596,225
      
-
        
596,225
  
Accumulated deficit
    
(189,388
)
    
72,962
        
(116,426
)
Treasury stock, 370,000 shares
    
(5,714
)
    
-
        
(5,714
)
Accumulated other comprehensive loss
    
(3,850
)
    
-
        
(3,850
)
Total Stockholders’ Equity
    
397,655
      
72,962
        
470,617
  
Total Liabilities and Stockholders' Equity
  
$
542,849
    
$
23,155
      
$
566,004
  

NOTE 1. Basis of Presentation

The Company’s historical consolidated financial statements have been adjusted in the unaudited consolidated pro forma financial statements to present events that are (i) directly attributable to the sale of the Business, (ii) factually supportable and (iii) are expected to have a continuing impact on the Company’s consolidated results following the sale of the Business. The pro forma consolidated statements of operations do not reflect the estimated gain on the sale of the Business.

The Company determined that this sale of the Business did not constitute a strategic shift that had a major effect on the Company’s operations or financial results and as a result, this transaction will not be classified as discontinued operations.

NOTE 2. Pro Forma Adjustments

The following adjustments have been reflected in the unaudited consolidated pro forma financial statements:

(a)   Reflects the Company’s historical US GAAP consolidated financial statements, as reported, before pro forma adjustments related to the sale of the Business for the nine month period ended February 28, 2023 and the year ended May 31, 2022.

(b)   Reflects the elimination of revenues and expenses representing the historical operating results of the Business.

(c)   There are no adjustments for income tax expense or deferred taxes when considering valuation allowances on the Company’s deferred taxes.

(d)   Reflects estimated net cash proceeds from the sale of the Business of $46.8 million, representing the gross sale price of $100.0 million less estimated transaction costs and the payoff of long-term debt.

(e)   Represents the assets conveyed to Merit in the sale of the Business.  The intangible assets relate specifically to the identifiable intangible assets related to BioSentry product technologies, trademarks, licenses and customer relationships.

NOTE 3. Transition Services Agreement

Pursuant to a transition services agreement and a contract manufacturing agreement entered into and effective on the closing of the sale of the Business, the Company will supply certain services to Merit. No pro forma adjustments have been made associated with these agreements as services to be provided with a defined monetary value are not considered material, will not have a continuous impact and the variable elements are not estimable at this time.