ALPHARETTA, Ga., July 31,
2024 /PRNewswire/ -- Avanos Medical, Inc. (NYSE:
AVNS) today reported second quarter 2024 financial results.
"We are pleased with our second quarter results and the
cumulative progress we have made at the mid-year point," said
Joe Woody, Avanos's chief executive
officer. Woody continued, "Digestive Health continues to lead in
delivering high-single digit growth while Pain Management and
Recovery performance is improving with quarter-over-quarter
sequential growth, and we are seeing meaningful progress on our
other transformation objectives, all of which are expected to
support mid-single digit growth for the remainder of the year. We
are proud of these accomplishments and pleased that our solutions
have been utilized to treat over 900,000 patients so far this
year."
Second Quarter 2024 Financial Highlights
- Total net sales from continuing operations were $171.7 million, a 1.4% increase from the
comparable prior year period.
- Net income from continuing operations for the quarter was
$4.3 million, compared to net loss
from continuing operations of $4.3
million a year ago.
- Adjusted net income from continuing operations totaled
$15.8 million, compared to
$11.2 million a year ago.
- Diluted earnings per share from continuing operations was
$0.09, compared to diluted loss per
share of $0.09 a year ago.
- Adjusted diluted earnings per share from continuing operations
was $0.34, compared to $0.24 a year ago.
- Adjusted EBITDA was $26.8
million, compared to $22.9
million a year ago.
Second Quarter 2024 Operating Results From
Continuing Operations
For the three months ended June 30,
2024, net sales totaled $171.7
million, an increase of 1.4% compared to the prior year
period, due to continued strong demand and volume in our Digestive
Health portfolio, primarily from our NeoMed neonatal and pediatric
feeding solutions, as well as continued demand for Game Ready. This
was partially offset by reduced demand for our hyaluronic acid
("HA") products. Favorable volume overall was partially offset by
pricing and currency translation effects.
Gross margin during the second quarter of 2024 was 55.7%,
compared to 57.7% in the prior year period. Adjusted gross margin
was 59.6% compared to 59.9% last year. Gross profit margin
decreased primarily due to costs related to the priorities of our
three-year transformation initiative (the "Transformation Process")
and plant separation costs associated with the divestiture of our
respiratory health ("RH") business (the "Divestiture"). In
addition, lower pricing for our HA products was partially offset by
favorable volume and product mix.
Selling and general expenses as a percentage of net sales was
47.1% for the second quarter of 2024, compared to 54.9% for the
second quarter of 2023. On an adjusted basis, selling and general
expenses as a percentage of net sales was 43.0% for the second
quarter of 2024, compared to 45.1% for the second quarter of 2023.
Selling and general expenses decreased primarily due to savings
realized from the execution on our Transformation Process and
disciplined spending.
Operating profit in the second quarter of 2024 was $6.3 million, compared to operating loss of
$2.1 million in the prior year
period, primarily due to higher sales volume along with lower
selling and general expenses related to the execution on
Transformation Process and restructuring priorities. On an adjusted
basis, operating profit totaled $21.8
million, compared to $18.4
million a year ago.
Adjusted EBITDA from continuing operations was $26.8 million in the three months ended
June 30, 2024, compared to
$22.9 million in the three months
ended June 30, 2023.
First Six Months of 2024 Operating Results
For the six months ended June 30,
2024, net sales were $337.8
million, an increase of 2.8% compared to the prior year
period, primarily due to strong demand for our Digestive Health
products and Game Ready products. This was partially offset by
lower demand and pricing for our HA products.
Gross margin was 56.4%, compared to 57.6% last year.
Adjusted gross margin was 59.7% compared to 59.8% last year
and was impacted by the same items noted above for the second
quarter.
Selling and general expenses as a percentage of net sales were
48.7% for the six months ended June 30,
2024, compared to 55.3% for the prior year period. The
decrease was primarily due to disciplined spending, partially
offset by non-recurring expenses associated with our ongoing
Transformation Process and the Divestiture. On an adjusted basis,
selling and general expenses as a percentage of net sales was 44.4%
for the first six months of 2024, compared to 46.5% in the prior
year period.
Operating profit was $10.3
million, compared to an operating loss of $8.2 million in the prior year period,
primarily due to increased demand for our Digestive Health products
and lower selling and general costs, partially offset by lower
volume and pricing of our HA products. On an adjusted basis,
operating profit was $38.1
million compared to $29.6
million a year ago.
Adjusted EBITDA for the six months ended June 30, 2024 was $48.4 million, compared to $39.0 million in the prior year period.
Cash Flow and Balance Sheet
Cash from operations less capital expenditures, or free cash
flow, for the second quarter was an inflow of $21.9 million, driven primarily by cash flow
provided by operating activities, compared to an outflow of
$6.6 million a year ago. The
Company's cash balance at June 30, 2024 was $92.2 million, compared to $87.7 million at year-end 2023.
Total debt outstanding, net of unamortized discounts, was
$175.1 million at June 30,
2024, compared to $168.0 million
at December 31, 2023.
Discontinued Operations
Net sales from discontinued operations were $13.6 million in the three months ended
June 30, 2024, compared to
$30.4 million in the three months
ended June 30, 2023. Net sales
from discontinued operations were $30.5
million in the six months ended June
30, 2024, compared to $62.8
million in the six months ended June
30, 2023.
2024 Outlook
For the year, the Company anticipates revenue from continuing
operations of between $685 million
and $705 million from continuing
operations, adjusted gross margins from continuing operations of
between 59.5% and 60.5% and adjusted diluted earnings per share
from continuing operations of between $1.30 and $1.45.
Non-GAAP Financial Measures
This press release and the accompanying tables include the
following financial measures that have not been calculated in
accordance with accounting principles generally accepted in the
U.S., or GAAP, and are therefore referred to as non-GAAP financial
measures:
- Adjusted net income;
- Adjusted diluted earnings per share;
- Adjusted gross and operating profit;
- Adjusted effective tax rate;
- Adjusted EBITDA; and
- Free cash flow.
These non-GAAP financial measures exclude the following items,
as applicable, for the relevant time periods as indicated in the
accompanying non-GAAP reconciliations to the comparable GAAP
financial measures:
- Certain acquisition and integration charges related to
acquisitions.
- Expenses associated with restructuring and transformation
activities, including the Divestiture in the fourth quarter of
2023.
- Expenses associated with European Union Medical Device
Regulation ("EU MDR") compliance.
- The amortization of intangible assets associated with prior
business acquisitions.
- The tax effects of certain adjusting items.
- The benefit associated with the tax effects of the CARES
Act.
- The positive or negative effect of changes in currency exchange
rates during the year.
The Company provides these non-GAAP financial measures as
supplemental information to its GAAP financial measures. Management
and the Company's board of directors use net sales on a constant
currency basis, adjusted net income, adjusted diluted earnings per
share, adjusted operating profit, adjusted EBITDA, and free cash
flow to: (a) evaluate the Company's historical and prospective
financial performance and its performance relative to its
competitors, (b) allocate resources and (c) measure the operational
performance of the Company's business units and their managers.
Management also believes that the use of an adjusted effective tax
rate provides improved insight into the tax effects of the
Company's ongoing business operations.
Additionally, the compensation committee of the Company's board
of directors will use certain of the non-GAAP financial measures
when setting and assessing achievement of incentive compensation
goals. These goals are based, in part, on the Company's net sales
on a constant currency basis and adjusted EBITDA, which will be
determined by excluding certain items that are used in calculating
these non-GAAP financial measures.
Our competitors may define these non-GAAP financial measures
differently, and as a result, our measure of these non-GAAP
financial measures may not be directly comparable to those of other
companies. Items excluded from these non-GAAP financial measures
are significant components in understanding and assessing financial
performance. These non-GAAP financial measures are supplemental
measures of operating performance that do not represent, and should
not be considered in isolation or as an alternative to, or
substitute for, the financial statement data presented in the
Company's consolidated financial statements as indicators of
financial performance. These non-GAAP financial measures have
limitations as analytical tools, and should not be considered in
isolation, or as a substitute for analysis of the Company's results
as reported under GAAP. We compensate for these limitations by
relying primarily on our GAAP results and using these non-GAAP
financial measures as supplemental information.
Reconciliations of these non-GAAP financial measures to the most
directly comparable GAAP financial measures are included in the
attached financial tables.
Conference Call Webcast
Avanos Medical, Inc. will host a conference call today at
9 a.m. ET. The conference call can be
accessed live over the internet at https://avanos.investorroom.com
or via telephone by dialing 800-836-8184 in the United States. A replay of the call will
be available at noon ET today by
calling 888-660-6345 in the United
States and entering passcode 70891#. A webcast of the
call will also be archived in the Investors section on the Avanos
website.
About Avanos Medical, Inc.
Avanos Medical (NYSE: AVNS) is a medical technology company
focused on delivering clinically superior solutions that will help
patients get back to the things that matter. Headquartered in
Alpharetta, Georgia, Avanos is
committed to addressing some of today's most important healthcare
needs, including providing a vital lifeline for nutrition to
patients from hospital to home, and reducing the use of opioids
while helping patients move from surgery to recovery. Avanos
develops, manufactures and markets its recognized brands globally
and holds leading market positions in multiple categories across
its portfolio. For more information, visit www.avanos.com and
follow Avanos Medical on X (@AvanosMedical), LinkedIn and
Facebook.
Forward-Looking Statements
This press release contains information that includes or is
based on "forward-looking statements" within the meaning of the
Private Securities Litigation Reform Act of 1995. Forward-looking
statements include all statements that do not relate solely to
historical or current facts, and can generally be identified by the
use of words such as "may," "believe," "will," "expect," "project,"
"estimate," "anticipate," "plan" or "continue" and similar
expressions. Forward-looking statements are based on the current
plans and expectations of management and are subject to various
risks and uncertainties that could cause our actual results to
differ materially from those expressed or implied in such
statements. Such factors include, but are not limited to: weakening
of economic conditions that could adversely affect the level of
demand for our products; pricing pressures generally, including
cost-containment measures that could adversely affect the price of
or demand for our products; shortage in drugs used in our Surgical
Pain and Recovery products or other disruptions in our supply
chain; the ongoing regional conflicts between Russia and Ukraine and in the Middle East; our ability to successfully
execute on or achieve the expected benefits of our transformation
initiative or our divestiture, acquisition or merger transactions;
inflationary pressures; financial conditions affecting the banking
system and the potential threats to the solvency of commercial
banks; changes in foreign exchange markets; legislative and
regulatory actions; unanticipated issues arising in connection with
clinical studies and otherwise that affect U.S. Food and Drug
Administration approval of new products; changes in reimbursement
levels from third-party payors; a significant increase in product
liability claims; the impact of investigative and legal proceedings
and compliance risks; the impact of the federal legislation to
reform the United States
healthcare system; changes in financial markets; and changes in the
competitive environment. The information contained herein speaks
only as of the date of this release and we undertake no obligation
to update forward-looking statements, except as may be required by
the securities laws.
Additional information concerning these and other factors that
may impact future results is contained in our filings with the U.S.
Securities and Exchange Commission, including our most recent Form
10-Q.
|
AVANOS MEDICAL,
INC.
|
|
CONDENSED
CONSOLIDATED INCOME STATEMENTS
|
|
(unaudited)
|
|
(in millions, except
per share amounts)
|
|
|
Three Months Ended
June 30,
|
|
Six Months Ended
June 30,
|
|
2024
|
|
2023
|
|
2024
|
|
2023
|
|
Net
Sales
|
$
171.7
|
|
$
169.4
|
|
$
337.8
|
|
$
328.7
|
|
Cost of products
sold
|
76.1
|
|
71.6
|
|
147.4
|
|
139.5
|
|
Gross
Profit
|
95.6
|
|
97.8
|
|
190.4
|
|
189.2
|
|
Research and
development expenses
|
6.3
|
|
6.8
|
|
13.3
|
|
14.3
|
|
Selling and general
expenses
|
80.9
|
|
93.0
|
|
164.5
|
|
181.8
|
|
Other expense,
net
|
2.1
|
|
0.1
|
|
2.3
|
|
1.3
|
|
Operating Income
(Loss)
|
6.3
|
|
(2.1)
|
|
10.3
|
|
(8.2)
|
|
Interest
income
|
3.0
|
|
0.5
|
|
3.6
|
|
1.0
|
|
Interest
expense
|
(3.1)
|
|
(3.5)
|
|
(6.2)
|
|
(7.0)
|
|
Income (Loss) Before
Income Taxes
|
6.2
|
|
(5.1)
|
|
7.7
|
|
(14.2)
|
|
Income tax (provision)
benefit
|
(1.9)
|
|
0.8
|
|
(2.9)
|
|
2.1
|
|
Income (Loss) from
Continuing Operations
|
4.3
|
|
(4.3)
|
|
4.8
|
|
(12.1)
|
|
Loss from discontinued
operations, net of tax
|
(2.5)
|
|
(63.8)
|
|
(3.9)
|
|
(56.5)
|
|
Net Income
(Loss)
|
$
1.8
|
|
$
(68.1)
|
|
$
0.9
|
|
$
(68.6)
|
|
|
|
|
|
|
|
|
|
Interest expense,
net
|
$
0.1
|
|
$
3.0
|
|
$
2.6
|
|
$
6.0
|
|
Income tax provision
(benefit)
|
1.0
|
|
(1.6)
|
|
1.5
|
|
(1.5)
|
|
Depreciation and
amortization
|
11.3
|
|
11.5
|
|
22.7
|
|
23.6
|
|
EBITDA
|
$
14.2
|
|
$
(55.2)
|
|
$
27.7
|
|
$
(40.5)
|
|
|
|
|
|
|
|
|
|
Earnings (Loss) Per
Share
|
|
|
|
|
|
|
|
|
Basic
|
|
|
|
|
|
|
|
|
Continuing
operations
|
$
0.09
|
|
$
(0.09)
|
|
$
0.10
|
|
$
(0.26)
|
|
Discontinued
operations
|
(0.05)
|
|
(1.37)
|
|
(0.08)
|
|
(1.21)
|
|
Basic Earnings (Loss)
Per Share
|
$
0.04
|
|
$
(1.46)
|
|
$
0.02
|
|
$
(1.47)
|
|
|
|
|
|
|
|
|
|
Diluted
|
|
|
|
|
|
|
|
|
Continuing
operations
|
$
0.09
|
|
$
(0.09)
|
|
$
0.10
|
|
$
(0.26)
|
|
Discontinued
operations
|
$
(0.05)
|
|
(1.37)
|
|
(0.08)
|
|
(1.21)
|
|
Diluted Earnings
(Loss) Per Share
|
$
0.04
|
|
$
(1.46)
|
|
$
0.02
|
|
$
(1.47)
|
|
|
|
|
|
|
|
|
|
Common Shares
Outstanding
|
|
|
|
|
|
|
|
|
Basic
|
45.9
|
|
46.8
|
|
46.1
|
|
46.7
|
|
Diluted
|
46.3
|
|
46.8
|
|
46.6
|
|
46.7
|
|
AVANOS MEDICAL,
INC.
|
|
Discontinued
Operations Summary
|
|
(unaudited)
|
|
(in millions, except
per share amounts)
|
|
|
Three Months Ended
June 30,
|
|
Six Months Ended
June 30,
|
|
2024
|
|
2023
|
|
2024
|
|
2023
|
|
Net Sales
|
$
13.6
|
|
$
30.4
|
|
$
30.5
|
|
$
62.8
|
|
Cost of products
sold
|
15.6
|
|
18.6
|
|
31.5
|
|
37.9
|
|
Gross
Profit
|
(2.0)
|
|
11.8
|
|
(1.0)
|
|
24.9
|
|
Research and
development expenses
|
—
|
|
0.2
|
|
—
|
|
0.6
|
|
Selling, general and
other expenses
|
—
|
|
3.8
|
|
—
|
|
7.7
|
|
Pretax loss on
classification as discontinued operations
|
—
|
|
72.3
|
|
—
|
|
72.3
|
|
Other expense,
net
|
1.4
|
|
0.1
|
|
4.3
|
|
0.2
|
|
Loss from discontinued
operations before income taxes
|
(3.4)
|
|
(64.6)
|
|
(5.3)
|
|
(55.9)
|
|
Income tax benefit
(provision) from discontinued operations
|
0.9
|
|
0.8
|
|
1.4
|
|
(0.6)
|
|
(Loss) from
discontinued operations, net of tax
|
$
(2.5)
|
|
$
(63.8)
|
|
$
(3.9)
|
|
$
(56.5)
|
|
|
|
|
|
|
|
|
|
(Loss) Per
Share
|
|
|
|
|
|
|
|
|
Basic
|
$
(0.05)
|
|
$
(1.37)
|
|
$
(0.08)
|
|
$
(1.21)
|
|
Diluted
|
$
(0.05)
|
|
$
(1.37)
|
|
$
(0.08)
|
|
$
(1.21)
|
|
AVANOS MEDICAL,
INC.
|
|
NON-GAAP RECONCILIATIONS
|
|
(unaudited)
|
|
(in
millions)
|
|
|
Gross
Profit
|
|
Three Months Ended
June 30, 2024
|
|
Three Months Ended
June 30, 2023
|
|
Continuing
Operations
|
|
Discontinued
Operations
|
|
Total
|
|
Continuing
Operations
|
|
Discontinued
Operations
|
|
Total
|
|
As reported
|
$ 95.6
|
|
$ (2.0)
|
|
$ 93.6
|
|
$ 97.8
|
|
$ 11.8
|
|
$
109.6
|
|
Acquisition and
integration-related charges
|
0.1
|
|
—
|
|
0.1
|
|
—
|
|
—
|
|
—
|
|
Restructuring and
transformation charges
|
0.3
|
|
—
|
|
0.3
|
|
0.1
|
|
—
|
|
0.1
|
|
Post-RH Divestiture
transition charges
|
0.4
|
|
—
|
|
0.4
|
|
—
|
|
—
|
|
—
|
|
Post-RH Divestiture
restructuring
|
2.2
|
|
—
|
|
2.2
|
|
—
|
|
—
|
|
—
|
|
Intangibles
amortization
|
3.6
|
|
—
|
|
3.6
|
|
3.6
|
|
—
|
|
3.6
|
|
As adjusted
non-GAAP
|
$
102.2
|
|
$ (2.0)
|
|
$
100.2
|
|
$
101.5
|
|
$ 11.8
|
|
$
113.3
|
|
Gross profit margin, as
reported
|
55.7 %
|
|
(14.7) %
|
|
50.5 %
|
|
57.7 %
|
|
38.8 %
|
|
54.9 %
|
|
Gross profit margin, as
adjusted
|
59.6 %
|
|
(14.7) %
|
|
54.1 %
|
|
59.9 %
|
|
38.8 %
|
|
56.7 %
|
|
Gross
Profit
|
|
Six Months Ended
June 30, 2024
|
|
Six Months Ended
June 30, 2023
|
|
Continuing
Operations
|
|
Discontinued
Operations
|
|
Total
|
|
Continuing
Operations
|
|
Discontinued
Operations
|
|
Total
|
|
As reported
|
$
190.4
|
|
$ (1.0)
|
|
$
189.4
|
|
$
189.2
|
|
$ 24.9
|
|
$
214.1
|
|
Acquisition and
integration-related charges
|
0.1
|
|
—
|
|
0.1
|
|
—
|
|
—
|
|
—
|
|
Restructuring and
transformation charges
|
1.0
|
|
—
|
|
1.0
|
|
0.1
|
|
—
|
|
0.1
|
|
Post-RH Divestiture
transition charges
|
0.8
|
|
—
|
|
0.8
|
|
—
|
|
—
|
|
—
|
|
Post-RH Divestiture
restructuring
|
2.2
|
|
—
|
|
2.2
|
|
—
|
|
—
|
|
—
|
|
Intangibles
amortization
|
7.0
|
|
—
|
|
7.0
|
|
7.2
|
|
—
|
|
7.2
|
|
As adjusted
non-GAAP
|
$
201.5
|
|
$ (1.0)
|
|
$
200.5
|
|
$
196.5
|
|
$ 24.9
|
|
$
221.4
|
|
Gross profit margin, as
reported
|
56.4 %
|
|
(3.3) %
|
|
51.4 %
|
|
57.6 %
|
|
39.6 %
|
|
54.7 %
|
|
Gross profit margin, as
adjusted
|
59.7 %
|
|
(3.3) %
|
|
54.4 %
|
|
59.8 %
|
|
39.6 %
|
|
56.6 %
|
|
AVANOS MEDICAL,
INC.
|
|
NON-GAAP RECONCILIATIONS
|
|
(unaudited)
|
|
(in
millions)
|
|
|
Operating Profit
(Loss)
|
|
Three Months Ended
June 30, 2024
|
|
Three Months Ended
June 30, 2023
|
|
Continuing
Operations
|
|
Discontinued
Operations
|
|
Total
|
|
Continuing
Operations
|
|
Discontinued
Operations
|
|
Total
|
|
As reported
|
$
6.3
|
|
$
(3.4)
|
|
$
2.9
|
|
$
(2.1)
|
|
$
7.7
|
|
$
5.6
|
|
Acquisition and
integration-related charges
|
2.2
|
|
—
|
|
2.2
|
|
0.3
|
|
—
|
|
0.3
|
|
Restructuring and
transformation charges
|
1.6
|
|
—
|
|
1.6
|
|
9.8
|
|
—
|
|
9.8
|
|
Post-RH Divestiture
transition charges
|
0.5
|
|
—
|
|
0.5
|
|
—
|
|
—
|
|
—
|
|
Post-RH Divestiture
restructuring
|
3.4
|
|
—
|
|
3.4
|
|
—
|
|
—
|
|
—
|
|
Divestiture
related
|
—
|
|
—
|
|
—
|
|
3.7
|
|
—
|
|
3.7
|
|
Estimated loss on
Divestiture
|
—
|
|
—
|
|
—
|
|
—
|
|
72.3
|
|
72.3
|
|
EU MDR
Compliance
|
1.5
|
|
—
|
|
1.5
|
|
0.9
|
|
—
|
|
0.9
|
|
Intangibles
amortization
|
6.3
|
|
—
|
|
6.3
|
|
5.8
|
|
0.3
|
|
6.1
|
|
As adjusted
non-GAAP
|
$
21.8
|
|
$
(3.4)
|
|
$
18.4
|
|
$
18.4
|
|
$
80.3
|
|
$
98.7
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Profit
(Loss)
|
|
Six Months Ended
June 30, 2024
|
|
Six Months Ended
June 30, 2023
|
|
Continuing
Operations
|
|
Discontinued
Operations
|
|
Total
|
|
Continuing
Operations
|
|
Discontinued
Operations
|
|
Total
|
|
As reported
|
$
10.3
|
|
$
(5.3)
|
|
$
5.0
|
|
$
(8.2)
|
|
$
16.4
|
|
$
8.2
|
|
Acquisition and
integration-related charges
|
2.5
|
|
—
|
|
2.5
|
|
1.8
|
|
—
|
|
1.8
|
|
Restructuring and
transformation charges
|
4.5
|
|
—
|
|
4.5
|
|
18.7
|
|
—
|
|
18.7
|
|
Post-RH Divestiture
transition charges
|
1.5
|
|
—
|
|
1.5
|
|
—
|
|
—
|
|
—
|
|
Post-RH Divestiture
restructuring
|
4.1
|
|
—
|
|
4.1
|
|
—
|
|
—
|
|
—
|
|
Divestiture
related
|
—
|
|
—
|
|
—
|
|
3.7
|
|
—
|
|
3.7
|
|
Estimated loss on
Divestiture
|
—
|
|
—
|
|
—
|
|
—
|
|
72.3
|
|
72.3
|
|
EU MDR
Compliance
|
2.8
|
|
—
|
|
2.8
|
|
2.0
|
|
—
|
|
2.0
|
|
Intangibles
amortization
|
12.4
|
|
—
|
|
12.4
|
|
11.6
|
|
0.8
|
|
12.4
|
|
As adjusted
non-GAAP
|
$
38.1
|
|
$
(5.3)
|
|
$
32.8
|
|
$
29.6
|
|
$
89.5
|
|
$
119.1
|
|
AVANOS MEDICAL,
INC.
|
|
NON-GAAP RECONCILIATIONS
|
|
(unaudited)
|
|
(in
millions)
|
|
|
Income (Loss)
Before Taxes
|
|
Three Months Ended
June 30, 2024
|
|
Three Months Ended
June 30, 2023
|
|
Continuing
Operations
|
|
Discontinued
Operations
|
|
Total
|
|
Continuing
Operations
|
|
Discontinued
Operations
|
|
Total
|
|
As reported
|
$
6.2
|
|
$
(3.4)
|
|
$
2.8
|
|
$
(5.1)
|
|
$
(64.6)
|
|
$
(69.7)
|
|
Acquisition and
integration-related charges
|
2.2
|
|
—
|
|
2.2
|
|
0.3
|
|
—
|
|
0.3
|
|
Restructuring and
transformation charges
|
1.6
|
|
—
|
|
1.6
|
|
9.8
|
|
—
|
|
9.8
|
|
Post-RH Divestiture
transition charges
|
0.5
|
|
—
|
|
0.5
|
|
—
|
|
—
|
|
—
|
|
Post-RH Divestiture
restructuring
|
3.4
|
|
—
|
|
3.4
|
|
—
|
|
—
|
|
—
|
|
Divestiture
related
|
—
|
|
—
|
|
—
|
|
3.7
|
|
—
|
|
3.7
|
|
Estimated loss on
Divestiture
|
—
|
|
—
|
|
—
|
|
—
|
|
72.3
|
|
72.3
|
|
EU MDR
Compliance
|
1.5
|
|
—
|
|
1.5
|
|
0.9
|
|
—
|
|
0.9
|
|
Intangibles
amortization
|
6.3
|
|
—
|
|
6.3
|
|
5.8
|
|
0.3
|
|
6.1
|
|
As adjusted
non-GAAP
|
$
21.7
|
|
$
(3.4)
|
|
$
18.3
|
|
$
15.4
|
|
$
8.0
|
|
$
23.4
|
|
Income (Loss)
Before Taxes
|
|
Six Months Ended
June 30, 2024
|
|
Six Months Ended
June 30, 2023
|
|
Continuing
Operations
|
|
Discontinued
Operations
|
|
Total
|
|
Continuing
Operations
|
|
Discontinued
Operations
|
|
Total
|
|
As reported
|
$
7.7
|
|
$
(5.3)
|
|
$
2.4
|
|
$
(14.2)
|
|
$
(55.9)
|
|
$
(70.1)
|
|
Acquisition and
integration-related charges
|
2.5
|
|
—
|
|
2.5
|
|
1.8
|
|
—
|
|
1.8
|
|
Restructuring and
transformation charges
|
4.5
|
|
—
|
|
4.5
|
|
18.7
|
|
—
|
|
18.7
|
|
Post-RH Divestiture
transition charges
|
1.5
|
|
—
|
|
1.5
|
|
—
|
|
—
|
|
—
|
|
Post-RH Divestiture
restructuring
|
4.1
|
|
—
|
|
4.1
|
|
—
|
|
—
|
|
—
|
|
Divestiture
related
|
—
|
|
—
|
|
—
|
|
3.7
|
|
—
|
|
3.7
|
|
Estimated loss on
Divestiture
|
—
|
|
—
|
|
—
|
|
—
|
|
72.3
|
|
72.3
|
|
EU MDR
Compliance
|
2.8
|
|
—
|
|
2.8
|
|
2.0
|
|
—
|
|
2.0
|
|
Intangibles
amortization
|
12.4
|
|
—
|
|
12.4
|
|
11.6
|
|
0.8
|
|
12.4
|
|
As adjusted
non-GAAP
|
$
35.5
|
|
$
(5.3)
|
|
$
30.2
|
|
$
23.6
|
|
$
17.2
|
|
$
40.8
|
|
AVANOS MEDICAL,
INC.
|
|
NON-GAAP RECONCILIATIONS
|
|
(unaudited)
|
|
(in
millions)
|
|
|
Tax (Provision)
Benefit
|
|
Three Months Ended
June 30, 2024
|
|
Three Months Ended
June 30, 2023
|
|
Continuing
Operations
|
|
Discontinued
Operations
|
|
Total
|
|
Continuing
Operations
|
|
Discontinued
Operations
|
|
Total
|
|
As reported
|
$ (1.9)
|
|
$
0.9
|
|
$ (1.0)
|
|
$
0.8
|
|
$
0.8
|
|
$
1.6
|
|
Tax effects of
adjusting items
|
(4.0)
|
|
—
|
|
(4.0)
|
|
(5.0)
|
|
(2.9)
|
|
(7.9)
|
|
As adjusted
non-GAAP
|
$ (5.9)
|
|
$
0.9
|
|
$ (5.0)
|
|
$ (4.2)
|
|
$ (2.1)
|
|
$ (6.3)
|
|
Effective tax rate, as
reported
|
30.6 %
|
|
26.5 %
|
|
35.7 %
|
|
15.7 %
|
|
1.2 %
|
|
2.3 %
|
|
Effective tax rate, as
adjusted
|
27.2 %
|
|
26.5 %
|
|
27.3 %
|
|
27.0 %
|
|
26.3 %
|
|
26.8 %
|
|
Tax (Provision)
Benefit
|
|
Six Months Ended
June 30, 2024
|
|
Six Months Ended
June 30, 2023
|
|
Continuing
Operations
|
|
Discontinued
Operations
|
|
Total
|
|
Continuing
Operations
|
|
Discontinued
Operations
|
|
Total
|
|
As reported
|
$ (2.9)
|
|
$
1.4
|
|
$ (1.5)
|
|
$
2.1
|
|
$ (0.6)
|
|
$
1.5
|
|
Tax effects of
adjusting items
|
(6.7)
|
|
—
|
|
(6.7)
|
|
(8.5)
|
|
(4.0)
|
|
(12.5)
|
|
As adjusted
non-GAAP
|
$ (9.6)
|
|
$
1.4
|
|
$ (8.2)
|
|
$ (6.4)
|
|
$ (4.6)
|
|
$
(11.0)
|
|
Effective tax rate, as
reported
|
37.7 %
|
|
26.4 %
|
|
(62.5) %
|
|
14.8 %
|
|
(1.1) %
|
|
(2.1) %
|
|
Effective tax rate, as
adjusted
|
27.0 %
|
|
26.4 %
|
|
27.2 %
|
|
27.0 %
|
|
27.0 %
|
|
27.0 %
|
|
AVANOS MEDICAL,
INC.
|
|
NON-GAAP RECONCILIATIONS
|
|
(unaudited)
|
|
(in millions except
per share amounts)
|
|
|
Net Income
(Loss)
|
|
Three Months Ended
June 30, 2024
|
|
Three Months Ended
June 30, 2023
|
|
Continuing
Operations
|
|
Discontinued
Operations
|
|
Total
|
|
Continuing
Operations
|
|
Discontinued
Operations
|
|
Total
|
|
As reported
|
$
4.3
|
|
$
(2.5)
|
|
$
1.8
|
|
$
(4.3)
|
|
$
(63.8)
|
|
$
(68.1)
|
|
Acquisition and
integration-related charges
|
2.2
|
|
—
|
|
2.2
|
|
0.3
|
|
—
|
|
0.3
|
|
Restructuring and
transformation charges
|
1.6
|
|
—
|
|
1.6
|
|
9.8
|
|
—
|
|
9.8
|
|
Post-RH Divestiture
transition charges
|
0.5
|
|
—
|
|
0.5
|
|
—
|
|
—
|
|
—
|
|
Post-RH Divestiture
restructuring
|
3.4
|
|
—
|
|
3.4
|
|
—
|
|
—
|
|
—
|
|
Divestiture
related
|
—
|
|
—
|
|
—
|
|
3.7
|
|
—
|
|
3.7
|
|
Estimated loss on
Divestiture
|
—
|
|
—
|
|
—
|
|
—
|
|
72.3
|
|
72.3
|
|
EU MDR
Compliance
|
1.5
|
|
—
|
|
1.5
|
|
0.9
|
|
—
|
|
0.9
|
|
Intangibles
amortization
|
6.3
|
|
—
|
|
6.3
|
|
5.8
|
|
0.3
|
|
6.1
|
|
Tax effects of
adjusting items
|
(4.0)
|
|
—
|
|
(4.0)
|
|
(5.0)
|
|
(2.9)
|
|
(7.9)
|
|
As adjusted
non-GAAP
|
$
15.8
|
|
$
(2.5)
|
|
$
13.3
|
|
$
11.2
|
|
$
5.9
|
|
$
17.1
|
|
Diluted earnings (loss)
per share, as reported
|
$
0.09
|
|
$
(0.05)
|
|
$
0.04
|
|
$
(0.09)
|
|
$
(1.37)
|
|
$
(1.46)
|
|
Diluted earnings (loss)
per share, as adjusted
|
$
0.34
|
|
$
(0.05)
|
|
$
0.29
|
|
$
0.24
|
|
$
0.13
|
|
$
0.37
|
|
Net Income
(Loss)
|
|
Six Months Ended
June 30, 2024
|
|
Six Months Ended
June 30, 2023
|
|
Continuing
Operations
|
|
Discontinued
Operations
|
|
Total
|
|
Continuing
Operations
|
|
Discontinued
Operations
|
|
Total
|
|
As reported
|
$
4.8
|
|
$
(3.9)
|
|
$
0.9
|
|
$
(12.1)
|
|
$
(56.5)
|
|
$
(68.6)
|
|
Acquisition and
integration-related charges
|
2.5
|
|
—
|
|
2.5
|
|
1.8
|
|
—
|
|
1.8
|
|
Restructuring and
transformation charges
|
4.5
|
|
—
|
|
4.5
|
|
18.7
|
|
—
|
|
18.7
|
|
Post-RH Divestiture
transition charges
|
1.5
|
|
—
|
|
1.5
|
|
—
|
|
—
|
|
—
|
|
Post-RH Divestiture
restructuring
|
4.1
|
|
—
|
|
4.1
|
|
—
|
|
—
|
|
—
|
|
Divestiture
related
|
—
|
|
—
|
|
—
|
|
3.7
|
|
—
|
|
3.7
|
|
Estimated loss on
Divestiture
|
—
|
|
—
|
|
—
|
|
—
|
|
72.3
|
|
72.3
|
|
EU MDR
Compliance
|
2.8
|
|
—
|
|
2.8
|
|
2.0
|
|
—
|
|
2.0
|
|
Intangibles
amortization
|
12.4
|
|
—
|
|
12.4
|
|
11.6
|
|
0.8
|
|
12.4
|
|
Tax effects of
adjusting items
|
(6.7)
|
|
—
|
|
(6.7)
|
|
(8.5)
|
|
(4.0)
|
|
(12.5)
|
|
As adjusted
non-GAAP
|
$
25.9
|
|
$
(3.9)
|
|
$
22.0
|
|
$
17.2
|
|
$
12.6
|
|
$
29.8
|
|
Diluted earnings (loss)
per share, as reported
|
$
0.10
|
|
$
(0.08)
|
|
$
0.03
|
|
$
(0.26)
|
|
$
(1.21)
|
|
$
(1.47)
|
|
Diluted earnings (loss)
per share, as adjusted
|
$
0.56
|
|
$
(0.08)
|
|
$
0.48
|
|
$
0.37
|
|
$
0.27
|
|
$
0.64
|
|
AVANOS MEDICAL,
INC.
|
|
NON-GAAP RECONCILIATIONS
|
|
(unaudited)
|
|
(in millions except
per share amounts)
|
|
|
Selling, General
and Administrative Expenses
|
|
Three Months Ended
June 30, 2024
|
|
Three Months Ended
June 30, 2023
|
|
Continuing
Operations
|
|
Discontinued
Operations
|
|
Total
|
|
Continuing
Operations
|
|
Discontinued
Operations
|
|
Total
|
|
As reported
|
$ 80.9
|
|
$
—
|
|
$ 80.9
|
|
$ 93.0
|
|
$
3.8
|
|
$ 96.8
|
|
Acquisition and
integration-related charges
|
(0.3)
|
|
—
|
|
(0.3)
|
|
(0.3)
|
|
—
|
|
(0.3)
|
|
Restructuring and
transformation charges
|
(1.3)
|
|
—
|
|
(1.3)
|
|
(9.5)
|
|
—
|
|
(9.5)
|
|
Post-RH Divestiture
transition charges
|
(0.1)
|
|
—
|
|
(0.1)
|
|
—
|
|
—
|
|
—
|
|
Post-RH Divestiture
restructuring
|
(1.2)
|
|
—
|
|
(1.2)
|
|
—
|
|
—
|
|
—
|
|
Divestiture
related
|
—
|
|
—
|
|
—
|
|
(3.7)
|
|
—
|
|
(3.7)
|
|
EU MDR
Compliance
|
(1.5)
|
|
—
|
|
(1.5)
|
|
(0.9)
|
|
—
|
|
(0.9)
|
|
Intangibles
amortization
|
(2.7)
|
|
—
|
|
(2.7)
|
|
(2.2)
|
|
(0.3)
|
|
(2.5)
|
|
As adjusted
non-GAAP
|
$ 73.8
|
|
$
—
|
|
$ 73.8
|
|
$ 76.4
|
|
$
3.5
|
|
$ 79.9
|
|
SG&A as a
percentage of revenue, as reported
|
47.1 %
|
|
— %
|
|
43.7 %
|
|
54.9 %
|
|
12.5 %
|
|
48.4 %
|
|
SG&A as a
percentage of revenue, as adjusted
|
43.0 %
|
|
— %
|
|
39.8 %
|
|
45.1 %
|
|
11.5 %
|
|
40.0 %
|
|
Selling, General
and Administrative Expenses
|
|
Six Months Ended
June 30, 2024
|
|
Six Months Ended
June 30, 2023
|
|
Continuing
Operations
|
|
Discontinued
Operations
|
|
Total
|
|
Continuing
Operations
|
|
Discontinued
Operations
|
|
Total
|
|
As reported
|
$
164.5
|
|
$
—
|
|
$
164.5
|
|
$
181.8
|
|
$
7.7
|
|
$
189.5
|
|
Acquisition and
integration-related charges
|
(0.6)
|
|
—
|
|
(0.6)
|
|
(0.4)
|
|
—
|
|
(0.4)
|
|
Restructuring and
transformation charges
|
(3.4)
|
|
—
|
|
(3.4)
|
|
(18.4)
|
|
—
|
|
(18.4)
|
|
Post-RH Divestiture
transition charges
|
(0.5)
|
|
—
|
|
(0.5)
|
|
—
|
|
—
|
|
—
|
|
Post-RH Divestiture
restructuring
|
(1.9)
|
|
—
|
|
(1.9)
|
|
—
|
|
—
|
|
—
|
|
Divestiture
related
|
—
|
|
—
|
|
—
|
|
(3.7)
|
|
—
|
|
(3.7)
|
|
EU MDR
Compliance
|
(2.8)
|
|
—
|
|
(2.8)
|
|
(2.0)
|
|
—
|
|
(2.0)
|
|
Intangibles
amortization
|
(5.4)
|
|
—
|
|
(5.4)
|
|
(4.4)
|
|
(0.8)
|
|
(5.2)
|
|
As adjusted
non-GAAP
|
$
149.9
|
|
$
—
|
|
$
149.9
|
|
$
152.9
|
|
$
6.9
|
|
$
159.8
|
|
SG&A as a
percentage of revenue, as reported
|
48.7 %
|
|
— %
|
|
44.7 %
|
|
55.3 %
|
|
12.3 %
|
|
48.4 %
|
|
SG&A as a
percentage of revenue, as adjusted
|
44.4 %
|
|
— %
|
|
40.7 %
|
|
46.5 %
|
|
11.0 %
|
|
40.8 %
|
|
AVANOS MEDICAL,
INC.
|
|
NON-GAAP RECONCILIATIONS
|
|
(unaudited)
|
|
(in
millions)
|
|
|
EBITDA
|
|
Three Months Ended
June 30, 2024
|
|
Three Months Ended
June 30, 2023
|
|
Continuing
Operations
|
|
Discontinued
Operations
|
|
Total
|
|
Continuing
Operations
|
|
Discontinued
Operations
|
|
Total
|
|
Net income
(loss)
|
$
4.3
|
|
$
(2.5)
|
|
$
1.8
|
|
$
(4.3)
|
|
$
(63.8)
|
|
$
(68.1)
|
|
Interest expense,
net
|
0.1
|
|
—
|
|
0.1
|
|
3.0
|
|
—
|
|
3.0
|
|
Income tax provision
(benefit)
|
1.9
|
|
(0.9)
|
|
1.0
|
|
(0.8)
|
|
(0.8)
|
|
(1.6)
|
|
Depreciation
|
5.0
|
|
—
|
|
5.0
|
|
4.5
|
|
0.9
|
|
5.4
|
|
Amortization
|
6.3
|
|
—
|
|
6.3
|
|
5.8
|
|
0.3
|
|
6.1
|
|
EBITDA
|
17.6
|
|
(3.4)
|
|
14.2
|
|
8.2
|
|
(63.4)
|
|
(55.2)
|
|
Acquisition and
integration-related charges
|
2.2
|
|
—
|
|
2.2
|
|
0.3
|
|
—
|
|
0.3
|
|
Restructuring and
transformation charges
|
1.6
|
|
—
|
|
1.6
|
|
9.8
|
|
—
|
|
9.8
|
|
Post-RH Divestiture
transition charges
|
0.5
|
|
—
|
|
0.5
|
|
—
|
|
—
|
|
—
|
|
Post-RH Divestiture
restructuring
|
3.4
|
|
—
|
|
3.4
|
|
—
|
|
—
|
|
—
|
|
Divestiture
related
|
—
|
|
—
|
|
—
|
|
3.7
|
|
—
|
|
3.7
|
|
Estimated loss on
Divestiture
|
—
|
|
—
|
|
—
|
|
—
|
|
72.3
|
|
72.3
|
|
EU MDR
Compliance
|
1.5
|
|
—
|
|
1.5
|
|
0.9
|
|
—
|
|
0.9
|
|
Adjusted
EBITDA
|
$
26.8
|
|
$
(3.4)
|
|
$
23.4
|
|
$
22.9
|
|
$
8.9
|
|
$
31.8
|
|
EBITDA
|
|
Six Months Ended
June 30, 2024
|
|
Six Months Ended
June 30, 2023
|
|
Continuing
Operations
|
|
Discontinued
Operations
|
|
Total
|
|
Continuing
Operations
|
|
Discontinued
Operations
|
|
Total
|
|
Net income
(loss)
|
$
4.8
|
|
$
(3.9)
|
|
$
0.9
|
|
$
(12.1)
|
|
$
(56.5)
|
|
$
(68.6)
|
|
Interest expense,
net
|
2.6
|
|
—
|
|
2.6
|
|
6.0
|
|
—
|
|
6.0
|
|
Income tax provision
(benefit)
|
2.9
|
|
(1.4)
|
|
1.5
|
|
(2.1)
|
|
0.6
|
|
(1.5)
|
|
Depreciation
|
10.3
|
|
—
|
|
10.3
|
|
9.4
|
|
1.8
|
|
11.2
|
|
Amortization
|
12.4
|
|
—
|
|
12.4
|
|
11.6
|
|
0.8
|
|
12.4
|
|
EBITDA
|
33.0
|
|
(5.3)
|
|
27.7
|
|
12.8
|
|
(53.3)
|
|
(40.5)
|
|
Acquisition and
integration-related charges
|
2.5
|
|
—
|
|
2.5
|
|
1.8
|
|
—
|
|
1.8
|
|
Restructuring and
transformation charges
|
4.5
|
|
—
|
|
4.5
|
|
18.7
|
|
—
|
|
18.7
|
|
Post-RH Divestiture
transition charges
|
1.5
|
|
—
|
|
1.5
|
|
—
|
|
—
|
|
—
|
|
Post-RH Divestiture
restructuring
|
4.1
|
|
—
|
|
4.1
|
|
—
|
|
—
|
|
—
|
|
Divestiture
related
|
—
|
|
—
|
|
—
|
|
3.7
|
|
—
|
|
3.7
|
|
Estimated loss on
Divestiture
|
—
|
|
—
|
|
—
|
|
—
|
|
72.3
|
|
72.3
|
|
EU MDR
Compliance
|
2.8
|
|
—
|
|
2.8
|
|
2.0
|
|
—
|
|
2.0
|
|
Adjusted
EBITDA
|
$
48.4
|
|
$
(5.3)
|
|
$
43.1
|
|
$
39.0
|
|
$
19.0
|
|
$
58.0
|
|
AVANOS MEDICAL,
INC.
|
|
NON-GAAP RECONCILIATIONS
|
|
(unaudited)
|
|
(in millions except
per share amounts)
|
|
|
Free Cash
Flow
|
|
Three Months Ended
June 30,
|
|
Six Months Ended
June 30,
|
|
2024
|
|
2023
|
|
2024
|
|
2023
|
|
Cash provided by (used
in) operating activities
|
$
27.8
|
|
$
(2.6)
|
|
$
19.8
|
|
$
(9.4)
|
|
Capital
expenditures
|
(5.9)
|
|
(4.0)
|
|
(10.0)
|
|
(8.0)
|
|
Free Cash
Flow
|
$
21.9
|
|
$
(6.6)
|
|
$
9.8
|
|
$
(17.4)
|
|
2024 OUTLOOK
|
|
|
Estimated
Range
|
|
Diluted earnings per
share (GAAP)
|
$
0.63
|
to
|
$
0.87
|
|
Intangibles
amortization
|
0.37
|
to
|
0.34
|
|
Restructuring and
transformation charges
|
0.08
|
to
|
0.06
|
|
Post RH-Divestiture
transition charges
|
0.12
|
to
|
0.10
|
|
Other
|
0.10
|
to
|
0.08
|
|
Adjusted diluted
earnings per share (non-GAAP)
|
$
1.30
|
to
|
$
1.45
|
|
AVANOS MEDICAL,
INC.
|
|
CONDENSED
CONSOLIDATED BALANCE SHEETS
|
|
(unaudited)
|
|
(in
millions)
|
|
|
June 30,
2024
|
|
December
31,
2023
|
|
ASSETS
|
|
|
|
|
Current
Assets
|
|
|
|
|
Cash and cash
equivalents
|
$
92.2
|
|
$
87.7
|
|
Accounts receivable,
net
|
123.0
|
|
142.8
|
|
Inventories
|
163.9
|
|
163.2
|
|
Prepaid and other
current assets
|
22.3
|
|
28.8
|
|
Assets held for
sale
|
72.7
|
|
64.5
|
|
Total Current
Assets
|
474.1
|
|
487.0
|
|
Property, Plant and
Equipment, net
|
110.7
|
|
117.2
|
|
Operating Lease
Right-of-Use Assets
|
29.4
|
|
26.8
|
|
Goodwill
|
794.4
|
|
796.1
|
|
Other Intangible
Assets, net
|
226.2
|
|
239.5
|
|
Deferred Tax
Assets
|
6.3
|
|
6.5
|
|
Other
Assets
|
16.7
|
|
19.3
|
|
TOTAL
ASSETS
|
$
1,657.8
|
|
$
1,692.4
|
|
|
|
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
|
Current
Liabilities
|
|
|
|
|
Current portion of
long-term debt
|
$
10.2
|
|
$
8.6
|
|
Current portion of
operating lease liabilities
|
14.4
|
|
12.8
|
|
Trade accounts
payable
|
51.4
|
|
56.3
|
|
Accrued
expenses
|
79.5
|
|
93.2
|
|
Liabilities held for
sale
|
52.7
|
|
63.7
|
|
Total Current
Liabilities
|
208.2
|
|
234.6
|
|
Long-Term
Debt
|
164.9
|
|
159.4
|
|
Operating Lease
Liabilities
|
28.8
|
|
28.3
|
|
Deferred Tax
Liabilities
|
23.4
|
|
23.8
|
|
Other Long-Term
Liabilities
|
10.5
|
|
10.0
|
|
TOTAL
LIABILITIES
|
435.8
|
|
456.1
|
|
Stockholders'
Equity
|
1,222.0
|
|
1,236.3
|
|
TOTAL LIABILITIES
AND STOCKHOLDERS' EQUITY
|
$
1,657.8
|
|
$
1,692.4
|
|
AVANOS MEDICAL,
INC.
|
|
CONDENSED
CONSOLIDATED CASH FLOW STATEMENTS
|
|
(unaudited)
|
|
(in
millions)
|
|
|
Three Months Ended
June 30,
|
|
Six Months Ended
June 30,
|
|
2024
|
|
2023
|
|
2024
|
|
2023
|
|
Operating
Activities
|
|
|
|
|
|
|
|
|
Net income
(loss)
|
$
1.8
|
|
$
(68.1)
|
|
$
0.9
|
|
$
(68.6)
|
|
Depreciation and
amortization
|
11.3
|
|
11.5
|
|
22.7
|
|
23.6
|
|
Goodwill
impairment
|
—
|
|
59.1
|
|
—
|
|
59.1
|
|
Loss on asset
dispositions
|
—
|
|
—
|
|
0.3
|
|
—
|
|
Changes in operating
assets and liabilities, net of acquisition
|
8.3
|
|
(13.4)
|
|
(13.7)
|
|
(32.7)
|
|
Deferred income taxes
and other
|
6.4
|
|
8.3
|
|
9.6
|
|
9.2
|
|
Cash Provided by
(Used in) Operating Activities
|
27.8
|
|
(2.6)
|
|
19.8
|
|
(9.4)
|
|
Investing
Activities
|
|
|
|
|
|
|
|
|
Capital
expenditures
|
(5.9)
|
|
(4.0)
|
|
(10.0)
|
|
(8.0)
|
|
Proceeds from RH
Divestiture post-closing settlement
|
—
|
|
—
|
|
2.1
|
|
—
|
|
Acquisition of assets
and investments in businesses
|
—
|
|
(2.5)
|
|
—
|
|
(2.5)
|
|
Cash Used in
Investing Activities
|
(5.9)
|
|
(6.5)
|
|
(7.9)
|
|
(10.5)
|
|
Financing
Activities
|
|
|
|
|
|
|
|
|
Secured debt
repayments
|
(1.5)
|
|
(1.5)
|
|
(3.1)
|
|
(3.1)
|
|
Revolving credit
facility proceeds
|
—
|
|
—
|
|
20.0
|
|
—
|
|
Revolving credit
facility repayments
|
—
|
|
—
|
|
(10.0)
|
|
(20.0)
|
|
Purchase of treasury
stock
|
(3.5)
|
|
(2.6)
|
|
(12.6)
|
|
(3.7)
|
|
Proceeds from the
exercise of stock options
|
—
|
|
—
|
|
0.5
|
|
0.6
|
|
Payment of contingent
consideration liabilities
|
—
|
|
—
|
|
(0.5)
|
|
—
|
|
Cash Used in
Financing Activities
|
(5.0)
|
|
(4.1)
|
|
(5.7)
|
|
(26.2)
|
|
Effect of Exchange Rate
Changes on Cash and Cash Equivalents
|
(0.5)
|
|
(0.7)
|
|
(1.7)
|
|
0.2
|
|
Increase (Decrease)
in Cash and Cash Equivalents
|
16.4
|
|
(13.9)
|
|
4.5
|
|
(45.9)
|
|
Cash and Cash
Equivalents - Beginning of Period
|
75.8
|
|
95.7
|
|
87.7
|
|
127.7
|
|
Cash and Cash
Equivalents - End of Period
|
$
92.2
|
|
$
81.8
|
|
$
92.2
|
|
$
81.8
|
|
AVANOS MEDICAL,
INC.
|
|
SELECTED BUSINESS
AND PRODUCTS DATA
|
|
(unaudited)
|
|
(in
millions)
|
|
|
Three Months Ended
June 30,
|
|
|
|
|
Six Months Ended
June 30,
|
|
|
|
2024
|
|
2023
|
|
Change
|
|
|
2024
|
|
2023
|
|
Change
|
|
Digestive
Health
|
$
97.7
|
|
$
93.0
|
|
5.1 %
|
|
|
$
192.4
|
|
$ 181.8
|
|
5.8 %
|
|
Pain Management and
Recovery:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Surgical pain and
recovery
|
$
32.3
|
|
$
34.8
|
|
(7.2) %
|
|
|
$
63.5
|
|
$
69.5
|
|
(8.6) %
|
|
Interventional
pain
|
41.7
|
|
41.6
|
|
0.2 %
|
|
|
81.9
|
|
77.4
|
|
5.8 %
|
|
Total Pain Management
and Recovery
|
74.0
|
|
76.4
|
|
(3.1) %
|
|
|
145.4
|
|
146.9
|
|
(1.0) %
|
|
Total Net
Sales
|
$
171.7
|
|
$ 169.4
|
|
1.4 %
|
|
|
$
337.8
|
|
$ 328.7
|
|
2.8 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
Volume
|
|
|
Pricing/Mix
|
|
Currency
|
|
|
|
Net sales - percentage
change
|
QTD
|
|
1.4 %
|
|
3.5 %
|
|
|
(1.8) %
|
|
(0.3) %
|
|
|
|
Net sales - percentage
change
|
YTD
|
|
2.8 %
|
|
4.3 %
|
|
|
(1.4) %
|
|
(0.1) %
|
|
|
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multimedia:https://www.prnewswire.com/news-releases/avanos-medical-inc-announces-second-quarter-2024-results-302210736.html
SOURCE Avanos Medical