AngioDynamics (ANGO) Q4 2012 Earnings Call July 12, 2012 4:30 pm ET Executives Bob Jones Joseph M. DeVivo - Chief Executive Officer, President and Director D. Joseph Gersuk - Chief Financial Officer, Chief Accounting Officer, Executive Vice President and Treasurer Analysts Jayson T. Bedford - Raymond James & Associates, Inc., Research Division Brooks E. West - Piper Jaffray Companies, Research Division Matthew Hewitt - Craig-Hallum Capital Group LLC, Research Division Charles Croson - Sidoti & Company, LLC Jason R. Mills - Canaccord Genuity, Research Division Robert M. Goldman - CL King & Associates, Inc. Larry Haimovitch - Haimovitch Medical Technology Consultants Presentation Operator
Before we get started, during the course of this conference call, the company will make projections and forward-looking statements regarding future events, including statements about revenue and earnings for fiscal 2013. We encourage you to review the company's past and future filings with the SEC, including, without limitation, the company's forms 10-Q and 10-K, which identify specific factors that may cause actual results or events to differ materially from those described in forward-looking statements.Finally, during the Q&A period today, we'd like to request each caller to limit themselves to 2 questions and encourage callers to re-queue to ask additional questions. We appreciate everyone's cooperation with this procedure. Now I'd like to turn the call over to Joe DeVivo, President and Chief Executive Officer. Joseph M. DeVivo All right, guys. Well, thank you for joining us today. We don't have no idea why it's not -- the release is not across the wire. There's nothing unusual. So aside from the fact that it's not across. But we have a really detailed presentation for you, really detailed slides that we'll go through, the business and growth rates, et cetera, et cetera. So we think it's worth not waiting for it to see why the wire service hasn't put it across. We have a lot of tables and reconciliations and maybe they have some formatting issues. But just so you know right now, there's nothing abnormal, there's nothing with the business. Everything is fine. Actually, everything is great. Let me go through and talk to you and start my prepared remarks. So with that. So good afternoon, and welcome to our fourth quarter and fiscal year-end 2012 Conference Call. With me on this call is Joe Gersuk, our CFO. I'll first provide some highlights of the fiscal year, and then Joe will provide details on the financial results for the quarter and for the year.
Before taking questions, I want to take the opportunity to take with you our vision and outlook for fiscal '13 and beyond.Before I get into that, I just want you to know this call is really intended to communicate with detail our strategy and the components which will drive our growth. It'll be a more thorough presentation than the past, given the importance of the acquisition of Navilyst and the first view as to how we look like a consolidated organization. So we'd appreciate your attention and also, we appreciate your patience as we provide you with a lot of great information. Today, it's a new day for AngioDynamics. We are bigger, stronger, more competitive, more talented, more focused than we've been in years. Already, we are seeing the benefits of the integration. We have a new management team, comprised of experienced AngioDynamics and Navilyst executives. And also, new members of the -- to the combined company. Operations are improving, savings are being realized. Our product development pipeline is robust and the deal pipeline is active, as we again become a company led by innovation. Ahead of us is a clear path to success through the execution of our integration plan, which is well underway. And our 2013 operating plan, which we are in the initial stages of delivering on, is also underway. Longer-term, our goal is to grow the top line by a minimum of 10% annually, while improving EPS by at least 15% each year. We intend to exit 2013 well on our way towards achieving this goal. Now you can see on this next slide, AngioDynamics has a new logo and a new branding treatment, which visually casts a new image for the company. And we are bringing to the company a proud and successful legacy in this new brand to AngioDynamics. It's crisp, modern, unique, and is a beacon to the new successful days that are to come here at AngioDynamics.
Moving forward, we intend to continue to cost effectively drive innovation to our growing number of customers of our Peripheral Vascular, Vascular Access and Interventional Oncology products. We will spend time during this call giving you clearer direction in these areas with unprecedented transparency, show you detail on what level of revenue we expect to accomplish in our key product segments, show you growth rates, which will build to our guidance and also share with you some of the structural makeup, which will help us better meet our customer's needs. So first, let's go through our fourth quarter accomplishments.In Q4, we closed the acquisition of Navilyst Medical on time and commenced integration on schedule. We accelerated the momentum of our VenaCure EVLT business and exited 2012 with a 17% worldwide growth rate performing over 90,000 procedures during the fiscal year. That's a record for the company and at it leads to a full year revenue growth for EVLT of 14%. NanoKnife recovered from our temporary stop in shipments to complete software upgrade, and achieved its first $4 million revenue the quarter with an excellent balance of sales between the U.S. and international. As I mentioned on previous calls, for NanoKnife, calendar 2012 would all be about data. The Journal of American College of Surgery published 2 peer review studies highlighting safety of NanoKnife, near vital structures, as well as safety of NanoKnife in the pancreas. We next -- we expect more peer review publications to follow this year and into next year. We signed an exclusive distribution deal with Microsulis to enter the microwave ablation business, thus strengthening the global leadership for AngioDynamics in interventional oncology. We launched the Navilyst embarked microcatheter and Charter guidewire for use in embolic procedures, a key reentry to the embolic market for AngioDynamics. Read the rest of this transcript for free on seekingalpha.com