AngioDynamics Inc. (NASDAQ:ANGO) Q2 2015 Earnings Conference Call - Final Transcript
Jan 08, 2015 • 04:30 pm ET
Good day and welcome to the AngioDynamics' Fiscal Year 2015 Second Quarter Results Conference Call. Today's conference is being recorded. At this time, I would like to turn the conference over to Bob Jones, Investor Relations. Please go ahead.
Thank you, Amber. Welcome everyone and thank you for joining us for AngioDynamics' conference call this afternoon to review the financial results for the fiscal 2015 second quarter, which ended on November 30, 2014. The news release that crossed the wire this afternoon is available on the company's website at www.angiodynamics.com. A replay of this call will be archived on the company's website.
(Cautionary Forward-Looking Statements)
Finally, during the question-and-answer period today, we'd like to request each caller to limit themselves to two questions and encourage callers to re-queue to ask additional questions. We appreciate everyone's cooperation with this procedure.With that, I'd now like to turn the call over to Joe DeVivo, Chief Executive Officer.
Thank you, Bob. Thank you, ladies and gentlemen for joining the call today. So to start off, I am pleased to report another solid quarter for the company as we continued to deliver on the objectives we have set for ourselves while executing both top line growth and improved bottom line leverage. We accomplished some major milestones this quarter which will help us grow into the future while delivering the revenue and earnings necessary today.I am pleased to see us positively anniversary last year's improving sales performance as each of our growth drivers continued to contribute.
Our gross margin improved 105 basis points this quarter due to our operational excellence program and positive mix from our growth drivers bringing us to 51.7% gross margin, which is ahead of schedule. I believe our performance signals that we have entered a period of sustaining operating leverage where gross margins and earnings will continue to grow faster than revenues. Within the quarter, AngioDynamics was added to the S&P
SmallCap 600 Index and the GICS Life & Health Insurance Sub-Industry Index adding significant liquidity for investors. This event coupled with a strong first quarter performance increased our trading volume from 100,000 shares traded per day to 300,000 shares during the second quarter. This added liquidity has attracted new kinds of investors making it much easier to build positions and frankly exit them.
We believe this addition is a validation of the strength of our company, our mission and the significant value creation we believe is yet ahead of us. This third-party validation stands on the shoulders of our management team's execution of expected revenue and profit growth plan, which I believe are sustainable. I am very proud of our team and for our products.
So, now to business updates. Our peripheral vascular business grew 1% in the quarter. Our largest business presented the biggest year-over-year challenge as revenues last year grew 7% on significant market share gains in venous ablation. Frankly, I am pleased to maintain those gains throughout the year. AngioVac sales grew 46% year-over-year, while utilization year-over-year was up