AngioDynamics focuses on cash position, draws $25 million on revolver

By Devika Patel

Knoxville, Tenn., April 7 – AngioDynamics Inc. plans to draw down $25 million on its revolver in order to maintain dry powder in current market conditions.

“We’ve been in contact with our strong and longstanding banking group and are keeping a close eye on the environment,” executive vice president and chief financial officer Steve Trowbridge said on the company’s third quarter ended Feb. 29 earnings conference call on Tuesday.

“We’re taking a thoughtful and disciplined approach to our balance sheet.

“We’re focusing on our collections, and while we continue to keep a close eye on them, we are pleased to say that commerce continues to be moving.

“Overall, we believe we’re in a solid position and will remain focused on maintaining dry powder and being proactive in the current environment.

“Consistent with this approach, we have initiated a modest draw of $25 million on our revolver.

“We believe that this is a prudent move, demonstrating both our focus on cash and liquidity and our strong foundational position,” Trowbridge said.

The company is only drawing a modest amount on the revolver, as it does not need to draw more.

“We talked about initiating that draw as both an opportunity to keep our eye on the cash wall, make sure that we’ve got the right cash balances that we need, but then also illustrate our strength,” Trowbridge said.

“We’re not looking to draw the entire revolver.

“It’s not a prudent thing to do at this time.

“It’s not something that we need to do at this time,” he said.

Management believes the company will be able to maintain its cash position through the downturn.

“We feel really good that we’re going to be able to maintain our strong foundational cash position through this downturn,” Trowbridge said.

Adjusted EBITDA in the third quarter of fiscal 2020 was $3.8 million, compared to $7.7 million in the third quarter of fiscal 2019.

Cash and cash equivalents were $27.16 million as of Feb. 29, 2020, compared to $227,641,000 as of May 31, 2019.

Long-term debt, net of current position, was $14,341,000 as of Feb. 29, 2020, compared to $124,407,000 as of May 31, 2019.

AngioDynamics is a Latham, N.Y.-based provider of medical devices for vascular access, surgery, peripheral vascular disease and oncology.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.