ALPHARETTA, Ga., Feb. 20,
2024 /PRNewswire/ -- Avanos Medical, Inc. (NYSE:
AVNS) today reported fourth quarter and full-year 2023 results.
"We were very pleased with the overall execution on our
transformation initiative last year, which sets the foundation for
more profitable growth in 2024 and for reaching our mid-term
financial targets in 2025," said Joe
Woody, Avanos's chief executive officer. Woody continued,
"We believe we are poised to maintain the positive momentum in our
Digestive Health portfolio and we are also confident that our
strategy for the Pain Management and Recovery business will lead to
sustainable growth as we enter 2024."
2023 Financial Highlights
- Fourth quarter net sales from continuing operations totaled
$173.3 million, a 4.6% decrease from
the prior year. For the full-year, net sales from continuing
operations decreased 1.6% to $673.3
million.
- Fourth quarter diluted earnings per share from continuing
operations were $0.24 compared to
diluted earnings per share of $0.21
per share a year ago, and fourth quarter adjusted diluted earnings
per share from continuing operations were $0.36 compared to $0.45 in the prior year. 2023 full-year diluted
loss per share from continuing operations were $0.21 compared to diluted earnings per share of
$0.46 in the prior year, and adjusted
diluted earnings per share from continuing operations were
$1.03 compared to $1.00 in 2022.
- Fourth quarter free cash flow was an outflow of $3.4 million following an inflow of $25.2 million in the third quarter and compared
to $28.8 million in the fourth
quarter of last year. 2023 full-year free cash flow was
$14.6 million compared to
$71.6 million in 2022.
During 2023, we completed a number of important steps in
furtherance of the three-year transformation initiative that we
initiated in January 2023 (the
"Transformation Process"). The Transformation Process is focused on
four key priorities: optimizing our commercial organization;
transforming our product portfolio; implementing cost management
initiatives to enhance operating profitability; and continuing to
efficiently deploy capital while maintaining a focused and
disciplined approach to M&A.
On October 2, 2023, we completed
the sale of substantially all of the assets of our respiratory
health (RH) business (the "Divestiture"). This transaction was
aimed at accelerating our efforts to focus our portfolio in markets
where we believe we are well-positioned to succeed. As a result of
the Divestiture, the RH business's operating results are reflected
as discontinued operations for all periods presented.
On July 24, 2023, we closed the
acquisition of Diros Technology, Inc. ("Diros"). Based in
Toronto, Canada, Diros is at the
forefront of radiofrequency ablation, or RFA, technology used to
treat chronic pain conditions. The addition of Diros' unique RF
TridentTM technology is expected to further enhance
Avanos' Pain Management and Recovery treatment options and
complement our premium COOLIEF* Cooled Radiofrequency product
offering. We believe the acquisition of Diros represents a
significant addition to our product portfolio.
Fourth Quarter 2023 Operating Results From Continuing
Operations
In the fourth quarter of 2023, net sales totaled $173.3 million, a 4.6% decrease compared to the
prior year, primarily from lower hyaluronic acid ("HA") portfolio
sales, partially offset by favorable foreign currency translation
effects.
Gross margin for the fourth quarter was 54.8% compared to 56.7%
a year ago. Adjusted gross margin was 58.6% compared to 58.9% in
the prior year. Gross profit margin decreased primarily due to
product mix, partially offset by favorable currency exchange rates
and manufacturing efficiencies.
Selling and general expenses as a percentage of net sales was
43.0% compared to 43.3% in the prior year period, primarily due to
non-recurring expenses associated with our ongoing Transformation
Process, the Diros acquisition and the Divestiture, as well as
compliance costs associated with the EU Medical Device Regulation
(the "EU MDR").
Operating profit in the quarter was $11.2
million compared to $16.6
million in the fourth quarter of 2022. On an adjusted basis,
operating profit was $27.1 million
compared to $29.5 million a year
ago.
Adjusted EBITDA for the quarter was $32.1
million compared to $33.7
million in the prior year.
Full-Year 2023 Operating Results From Continuing
Operations
Net sales decreased 1.6% to $673.3
million in 2023 primarily due to lower volume in the Pain
Management and Recovery portfolio (primarily lower sales of HA pain
relief products), partially offset by continued strong demand for
Digestive Health products. In addition to volume, 0.3% of favorable
pricing was offset by 0.2% of unfavorable foreign currency
translation effects.
Gross margin for 2023 was 56.4% compared to 57.6% in 2022.
Adjusted gross margin was 59.1%, down from 59.9% last year due
primarily to unfavorable product mix, partially offset by improved
manufacturing efficiencies.
Selling and general expenses as a percentage of net sales were
49.8% compared to 47.7% in the prior year period, driven by higher
selling costs, along with non-recurring expenses associated with
our ongoing Transformation Process, the Divestiture and the Diros
acquisition, as well as compliance costs associated with the EU
MDR.
Operating income in 2023 was $4.2
million compared to $35.5
million in the prior year. On an adjusted basis, operating
profit was $79.7 million compared to
$73.2 million in 2022.
For the full-year, adjusted EBITDA totaled $98.9 million, compared to $91.2 million in the prior year.
Cash Flow and Balance Sheet
Cash from operations less capital expenditures, or free cash
flow, for the fourth quarter of 2023 was an outflow of $3.4 million, compared to an inflow of
$28.8 million a year ago. For 2023,
free cash flow was $14.6 million,
compared to $71.6 million in the
prior year.
At year-end 2023, the Company's cash balance was $87.7 million compared to $127.7 million at year-end 2022. Total debt at
the end of the fourth quarter totaled $168.0 million, consisting of borrowings of
$118.8 million on the Company's
term loan facility and $49.2 million
on the revolving credit facility.
Discontinued Operations
Net sales from discontinued operations were $7.0 million in the three months ended
December 31, 2023, compared to $35.9 million in the three months ended
December 31, 2022. Net sales from discontinued operations were
$100.9 million in the year ended
December 31, 2023, compared to
$135.9 million in the year ended
December 31, 2022. We recognized a
loss on disposal of the RH business, and accordingly, we recorded
impairment of $70.8 million against
assets in the disposal group, which is included in "(Loss) income
from discontinued operations, net of tax."
2024 Outlook
The Company expects 2024 net sales to be between $685 and $705
million, which assumes organic growth between 3% to 6%,
excluding the impact of the product portfolio rationalization under
the Transformation Process. Adjusted gross profit margins are
expected to be between 59.5% and 60.5%, adjusted SG&A as a
percentage of revenue is expected to be between 41% and 42%, and
adjusted diluted earnings per share are expected to be between
$1.30 to $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
- 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:
- Incremental expenses associated with altering operations in
response to the COVID-19 pandemic.
- Expenses associated with restructuring and transformation
activities, including IT-related charges.
- Expenses associated with post-divestiture transition
activities.
- The amortization of intangible assets associated with prior
business acquisitions.
- Expenses associated with certain litigation matters.
- Compliance with the EU MDR.
- Certain acquisition and integration charges related to the
acquisition of OrthogenRx and Game Ready.
- The tax effects of certain adjusting items.
- The benefit associated with 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 our 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 our
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 our 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
877-240-5772 in the United States.
A replay of the call will be available at noon ET today by calling 877-344-7529 in
the United States and entering
passcode 5134094. 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 device company focused
on delivering clinically superior breakthrough solutions that will
help patients get back to the things that matter. Headquartered in
Alpharetta, Georgia, Avanos is
committed to creating the next generation of innovative healthcare
solutions which will address our most important healthcare needs,
such as reducing the use of opioids while helping patients move
from surgery to recovery. Avanos develops, manufactures and markets
its recognized brands in more than 90 countries. For more
information, visit www.avanos.com and follow Avanos Medical on
Twitter (@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, among others. 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; shortages in drugs used in our Surgical
Pain and Recovery products or other disruptions in our supply
chain; the ongoing conflicts between Russia and Ukraine and in the Middle East; our ability to successfully
execute on or achieve the expected benefits of the Transformation
Process or our divestiture, acquisition or merger transactions;
inflationary pressures; rising interest rates; financial conditions
affecting the banking system and the potential threats to 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. 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-K and Quarterly
Reports on Form 10-Q.
AVANOS MEDICAL,
INC. CONDENSED CONSOLIDATED INCOME
STATEMENTS (unaudited) (in millions, except per
share amounts)
|
|
|
Three Months Ended
December 31,
|
|
Year Ended December
31,
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
Net
Sales
|
$
173.3
|
|
$
181.6
|
|
$
673.3
|
|
$
684.1
|
Cost of products
sold
|
78.3
|
|
78.7
|
|
293.6
|
|
289.9
|
Gross
Profit
|
95.0
|
|
102.9
|
|
379.7
|
|
394.2
|
Research and
development expenses
|
6.8
|
|
7.2
|
|
27.2
|
|
29.2
|
Selling and general
expenses
|
74.5
|
|
78.7
|
|
335.0
|
|
326.5
|
Other expense
(income), net
|
2.5
|
|
0.4
|
|
13.3
|
|
3.0
|
Operating
Income
|
11.2
|
|
16.6
|
|
4.2
|
|
35.5
|
Interest
income
|
1.0
|
|
0.7
|
|
2.9
|
|
1.2
|
Interest
expense
|
(3.3)
|
|
(3.0)
|
|
(15.0)
|
|
(10.0)
|
Income Before Income
Taxes
|
8.9
|
|
14.3
|
|
(7.9)
|
|
26.7
|
Income tax benefit
(provision)
|
2.1
|
|
(4.6)
|
|
(2.0)
|
|
(5.2)
|
Income (Loss) from
Continuing Operations
|
11.0
|
|
9.7
|
|
(9.9)
|
|
21.5
|
(Loss) Income from
discontinued operations, net of tax
|
(0.5)
|
|
7.2
|
|
(51.9)
|
|
29.0
|
Net Income
(Loss)
|
$
10.5
|
|
$
16.9
|
|
$
(61.8)
|
|
$
50.5
|
|
|
|
|
|
|
|
|
Interest expense,
net
|
2.3
|
|
2.3
|
|
12.1
|
|
8.8
|
Income tax (provision)
benefit
|
(3.4)
|
|
7.0
|
|
2.9
|
|
14.7
|
Depreciation and
amortization
|
11.5
|
|
13.4
|
|
46.1
|
|
47.7
|
EBITDA
|
$
20.9
|
|
$
39.6
|
|
$
(0.7)
|
|
$
121.7
|
|
|
|
|
|
|
|
|
Earnings (Loss) Per
Share
|
|
|
|
|
|
|
|
Basic
|
|
|
|
|
|
|
|
Continuing
operations
|
$
0.24
|
|
$
0.21
|
|
$
(0.21)
|
|
$
0.46
|
Discontinued
operations
|
$
(0.01)
|
|
$
0.15
|
|
$
(1.11)
|
|
$
0.62
|
Basic (Loss) Earnings
Per Share
|
$
0.23
|
|
$
0.36
|
|
$
(1.32)
|
|
$
1.08
|
|
|
|
|
|
|
|
|
Diluted
|
|
|
|
|
|
|
|
Continuing
operations
|
$
0.24
|
|
$
0.21
|
|
$
(0.21)
|
|
$
0.46
|
Discontinued
operations
|
$
(0.01)
|
|
$
0.15
|
|
$
(1.11)
|
|
$
0.61
|
Diluted (Loss)
Earnings Per Share
|
$
0.23
|
|
$
0.36
|
|
$
(1.32)
|
|
$
1.07
|
|
|
|
|
|
|
|
|
Common Shares
Outstanding
|
|
|
|
|
|
|
|
Basic
|
46.2
|
|
46.5
|
|
46.6
|
|
46.9
|
Diluted
|
46.6
|
|
47.0
|
|
46.6
|
|
47.3
|
AVANOS MEDICAL,
INC. Discontinued Operations
Summary (unaudited) (in millions, except per
share amounts)
|
|
|
Three Months Ended
December 31,
|
|
Year Ended December
31,
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
Net Sales
|
$
7.0
|
|
$
35.9
|
|
$
100.9
|
|
$
135.9
|
Cost of products
sold
|
11.0
|
|
21.9
|
|
68.8
|
|
80.1
|
Gross
Profit
|
(4.0)
|
|
14.0
|
|
32.1
|
|
55.8
|
Research and
development expenses
|
—
|
|
0.3
|
|
0.8
|
|
1.4
|
Selling, general and
other expenses
|
(0.7)
|
|
3.9
|
|
11.2
|
|
15.4
|
Pretax gain (loss) on
classification as discontinued operations
|
(1.5)
|
|
—
|
|
70.8
|
|
—
|
Other expense,
net
|
—
|
|
0.2
|
|
0.3
|
|
0.5
|
Operating (loss)
income
|
(1.8)
|
|
9.6
|
|
(51.0)
|
|
38.5
|
Income tax benefit
(provision) from discontinued operations
|
1.3
|
|
(2.4)
|
|
(0.9)
|
|
(9.5)
|
(Loss) Income from
discontinued operations, net of tax
|
$
(0.5)
|
|
$
7.2
|
|
$
(51.9)
|
|
$
29.0
|
AVANOS MEDICAL,
INC. NON-GAAP RECONCILIATIONS (unaudited) (in
millions)
|
|
|
Gross
Profit
|
|
Three Months Ended
December 31, 2023
|
|
Three Months Ended
December 31, 2022
|
|
Continuing
Operations
|
|
Disc.
Operations
|
|
Total
|
|
Continuing
Operations
|
|
Disc.
Operations
|
|
Total
|
As reported
|
$ 95.0
|
|
$ (4.0)
|
|
$ 91.0
|
|
$
102.9
|
|
$ 14.0
|
|
$
116.9
|
Acquisition and
integration-related charges
|
0.4
|
|
—
|
|
0.4
|
|
—
|
|
—
|
|
—
|
Restructuring and
transformation charges
|
2.4
|
|
—
|
|
2.4
|
|
—
|
|
—
|
|
—
|
Divestiture related
charges
|
—
|
|
1.4
|
|
1.4
|
|
—
|
|
—
|
|
—
|
EU MDR
Compliance
|
—
|
|
—
|
|
—
|
|
(0.2)
|
|
—
|
|
(0.2)
|
Intangibles
amortization
|
3.8
|
|
—
|
|
3.8
|
|
4.3
|
|
—
|
|
4.3
|
As adjusted
non-GAAP
|
$
101.6
|
|
$ (2.6)
|
|
$ 99.0
|
|
$
107.0
|
|
$ 14.0
|
|
$
121.0
|
Gross profit margin, as
reported
|
54.8 %
|
|
(57.1) %
|
|
50.5 %
|
|
56.7 %
|
|
39.0 %
|
|
53.7 %
|
Gross profit margin, as
adjusted
|
58.6 %
|
|
(37.1) %
|
|
54.9 %
|
|
58.9 %
|
|
39.0 %
|
|
55.6 %
|
|
|
Gross
Profit
|
|
Year Ended December
31, 2023
|
|
Year Ended December
31, 2022
|
|
Continuing
Operations
|
|
Disc.
Operations
|
|
Total
|
|
Continuing
Operations
|
|
Disc.
Operations
|
|
Total
|
As reported
|
$
379.7
|
|
$ 32.1
|
|
$
411.8
|
|
$
394.2
|
|
$ 55.8
|
|
$
450.0
|
Acquisition and
integration-related charges
|
0.4
|
|
—
|
|
0.4
|
|
1.4
|
|
—
|
|
1.4
|
Restructuring and
transformation charges
|
3.0
|
|
—
|
|
3.0
|
|
—
|
|
—
|
|
—
|
Divestiture related
charges
|
—
|
|
1.4
|
|
1.4
|
|
—
|
|
—
|
|
—
|
EU MDR
Compliance
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
Intangibles
amortization
|
14.6
|
|
—
|
|
14.6
|
|
14.4
|
|
—
|
|
14.4
|
As adjusted
non-GAAP
|
$
397.7
|
|
$ 33.5
|
|
$
431.2
|
|
$
410.0
|
|
$ 55.8
|
|
$
465.8
|
Gross profit margin, as
reported
|
56.4 %
|
|
31.8 %
|
|
53.2 %
|
|
57.6 %
|
|
41.1 %
|
|
54.9 %
|
Gross profit margin, as
adjusted
|
59.1 %
|
|
33.2 %
|
|
55.7 %
|
|
59.9 %
|
|
41.1 %
|
|
56.8 %
|
AVANOS MEDICAL,
INC. NON-GAAP RECONCILIATIONS (unaudited) (in
millions)
|
|
|
Operating Profit
(Loss)
|
|
Three Months Ended
December 31, 2023
|
|
Three Months Ended
December 31, 2022
|
|
Continuing
Operations
|
|
Disc.
Operations
|
|
Total
|
|
Continuing
Operations
|
|
Disc.
Operations
|
|
Total
|
As reported
|
$
11.2
|
|
$
(1.8)
|
|
$
9.4
|
|
$
16.6
|
|
$
9.6
|
|
$
26.2
|
Acquisition and
integration-related charges
|
0.9
|
|
—
|
|
0.9
|
|
0.4
|
|
—
|
|
0.4
|
Restructuring and
transformation charges(a)
|
5.2
|
|
—
|
|
5.2
|
|
—
|
|
—
|
|
—
|
Divestiture related
charges
|
0.9
|
|
—
|
|
0.9
|
|
—
|
|
—
|
|
—
|
Estimated loss on
Divestiture
|
—
|
|
(1.5)
|
|
(1.5)
|
|
—
|
|
—
|
|
|
EU MDR
Compliance(b)
|
0.9
|
|
—
|
|
0.9
|
|
1.5
|
|
—
|
|
1.5
|
Litigation and
legal
|
1.5
|
|
—
|
|
1.5
|
|
—
|
|
—
|
|
—
|
Other
items(c)
|
—
|
|
—
|
|
—
|
|
3.8
|
|
—
|
|
3.8
|
Intangibles
amortization
|
6.5
|
|
—
|
|
6.5
|
|
7.2
|
|
0.5
|
|
7.7
|
As adjusted
non-GAAP
|
$
27.1
|
|
$
(3.3)
|
|
$
23.8
|
|
$
29.5
|
|
$
10.1
|
|
$
39.6
|
|
|
Operating
Profit
|
|
Year Ended December
31, 2023
|
|
Year Ended December
31, 2022
|
|
Continuing
Operations
|
|
Disc.
Operations
|
|
Total
|
|
Continuing
Operations
|
|
Disc.
Operations
|
|
Total
|
As reported
|
$
4.2
|
|
$
(51.0)
|
|
$
(46.8)
|
|
$
35.5
|
|
$
38.5
|
|
$
74.0
|
Acquisition and
integration-related charges
|
3.3
|
|
—
|
|
3.3
|
|
3.4
|
|
—
|
|
3.4
|
Restructuring and
transformation charges(a)
|
28.2
|
|
—
|
|
28.2
|
|
—
|
|
—
|
|
—
|
Divestiture related
charges
|
6.0
|
|
0.8
|
|
6.8
|
|
—
|
|
—
|
|
—
|
Estimated loss on
Divestiture
|
—
|
|
70.8
|
|
70.8
|
|
—
|
|
—
|
|
—
|
EU MDR
Compliance(b)
|
3.7
|
|
—
|
|
3.7
|
|
6.9
|
|
—
|
|
6.9
|
Litigation and
legal
|
10.0
|
|
—
|
|
10.0
|
|
—
|
|
—
|
|
—
|
Other
items(c)
|
—
|
|
—
|
|
—
|
|
3.8
|
|
—
|
|
3.8
|
Intangibles
amortization
|
24.3
|
|
0.8
|
|
25.1
|
|
23.6
|
|
2.1
|
|
25.7
|
As adjusted
non-GAAP
|
$
79.7
|
|
$
21.4
|
|
$
101.1
|
|
$
73.2
|
|
$
40.6
|
|
$
113.8
|
|
|
|
|
|
|
|
(a)
|
Expenses incurred for
the Transformation Process are included in "Costs of products
sold," "Research and development," "Selling and general expenses"
and "Other expense, net" on the Condensed Consolidated Income
Statements.
|
(b)
|
In the three months
ended December 31, 2023 and 2022, EU MDR Compliance related charges
are included in "Selling and general expenses" on the Condensed
Consolidated Income Statements. In the years ended
December 31, 2023 and 2022, EU MDR Compliance related charges
are included in "Costs of products sold" and "Selling and general
expenses" on the Condensed Consolidated Income
Statements.
|
(c)
|
Other items in the
three months and year ended December 31, 2022 includes $2.6 million
of consulting costs associated with evaluation and overall scope
and alternatives for transforming our business and $1.2 million for
the impairment of certain assets associated with research and
development projects that were cancelled.
|
AVANOS MEDICAL,
INC. NON-GAAP RECONCILIATIONS (unaudited) (in
millions)
|
|
|
Income (Loss) Before
Taxes
|
|
Three Months Ended
December 31, 2023
|
|
Three Months Ended
December 31, 2022
|
|
Continuing
Operations
|
|
Disc.
Operations
|
|
Total
|
|
Continuing
Operations
|
|
Disc.
Operations
|
|
Total
|
As reported
|
$
8.9
|
|
$
(1.8)
|
|
$
7.1
|
|
$
14.3
|
|
$
9.6
|
|
$
23.9
|
Acquisition and
integration-related charges
|
0.9
|
|
—
|
|
0.9
|
|
0.4
|
|
—
|
|
0.4
|
Restructuring and
transformation charges
|
5.2
|
|
—
|
|
5.2
|
|
—
|
|
—
|
|
—
|
Divestiture related
charges
|
0.9
|
|
—
|
|
0.9
|
|
—
|
|
—
|
|
—
|
Estimated loss on
divestiture
|
—
|
|
(1.5)
|
|
(1.5)
|
|
—
|
|
—
|
|
—
|
EU MDR
Compliance
|
0.9
|
|
—
|
|
0.9
|
|
1.5
|
|
—
|
|
1.5
|
Litigation and
legal
|
1.5
|
|
—
|
|
1.5
|
|
—
|
|
—
|
|
—
|
Other items
|
—
|
|
—
|
|
—
|
|
3.8
|
|
—
|
|
3.8
|
Intangibles
amortization
|
6.5
|
|
—
|
|
6.5
|
|
7.2
|
|
0.5
|
|
7.7
|
As adjusted
non-GAAP
|
$
24.8
|
|
$
(3.3)
|
|
$
21.5
|
|
$
27.2
|
|
$
10.1
|
|
$
37.3
|
|
|
(Loss) Income Before
Taxes
|
|
Year Ended December
31, 2023
|
|
Year Ended December
31, 2022
|
|
Continuing
Operations
|
|
Disc.
Operations
|
|
Total
|
|
Continuing
Operations
|
|
Disc.
Operations
|
|
Total
|
As reported
|
$
(7.9)
|
|
$
(51.0)
|
|
$
(58.9)
|
|
$
26.7
|
|
$
38.5
|
|
$
65.2
|
Acquisition and
integration-related charges
|
3.3
|
|
—
|
|
3.3
|
|
3.4
|
|
—
|
|
3.4
|
Restructuring and
transformation charges
|
28.2
|
|
—
|
|
28.2
|
|
—
|
|
—
|
|
—
|
Divestiture related
charges
|
6.0
|
|
0.8
|
|
6.8
|
|
—
|
|
—
|
|
—
|
Estimated loss on
Divestiture
|
—
|
|
70.8
|
|
70.8
|
|
—
|
|
—
|
|
—
|
EU MDR
Compliance
|
3.7
|
|
—
|
|
3.7
|
|
6.9
|
|
—
|
|
6.9
|
Litigation and
legal
|
10.0
|
|
—
|
|
10.0
|
|
—
|
|
—
|
|
—
|
Intangibles
amortization
|
24.3
|
|
0.8
|
|
25.1
|
|
23.6
|
|
2.1
|
|
25.7
|
Other items
|
—
|
|
—
|
|
—
|
|
3.8
|
|
—
|
|
3.8
|
Loss on extinguishment
of debt
|
—
|
|
—
|
|
—
|
|
1.1
|
|
—
|
|
1.1
|
As adjusted
non-GAAP
|
$
67.6
|
|
$
21.4
|
|
$
89.0
|
|
$
65.5
|
|
$
40.6
|
|
$
106.1
|
AVANOS MEDICAL,
INC. NON-GAAP RECONCILIATIONS (unaudited) (in
millions, except per share amounts)
|
|
|
Tax Benefit
(Provision)
|
|
Three Months Ended
December 31, 2023
|
|
Three Months Ended
December 31, 2022
|
|
Continuing
Operations
|
|
Disc.
Operations
|
|
Total
|
|
Continuing
Operations
|
|
Disc.
Operations
|
|
Total
|
As reported
|
$
2.1
|
|
$
1.3
|
|
$
3.4
|
|
$ (4.6)
|
|
$ (2.4)
|
|
$ (7.0)
|
Tax effects of
adjusting items
|
(10.3)
|
|
—
|
|
(10.3)
|
|
(1.9)
|
|
(0.9)
|
|
(2.8)
|
Effects of the CARES
Act and other
|
—
|
|
—
|
|
—
|
|
0.5
|
|
—
|
|
0.5
|
As adjusted
non-GAAP
|
$ (8.2)
|
|
$
1.3
|
|
$ (6.9)
|
|
$ (6.0)
|
|
$ (3.3)
|
|
$ (9.3)
|
Effective tax rate, as
reported
|
23.6 %
|
|
72.2 %
|
|
(47.9) %
|
|
32.2 %
|
|
(25.0) %
|
|
29.3 %
|
Effective tax rate, as
adjusted
|
33.2 %
|
|
39.4 %
|
|
32.3 %
|
|
22.1 %
|
|
(32.7) %
|
|
24.9 %
|
|
|
Tax
Provision
|
|
Year Ended December
31, 2023
|
|
Year Ended December
31, 2022
|
|
Continuing
Operations
|
|
Disc.
Operations
|
|
Total
|
|
Continuing
Operations
|
|
Disc.
Operations
|
|
Total
|
As reported
|
$ (2.0)
|
|
$ (0.9)
|
|
$ (2.9)
|
|
$ (5.2)
|
|
$ (9.5)
|
|
$
(14.7)
|
Tax effects of
adjusting items
|
(17.8)
|
|
(4.4)
|
|
(22.2)
|
|
(9.5)
|
|
(0.4)
|
|
(9.9)
|
Effects of the CARES
Act and other
|
—
|
|
—
|
|
—
|
|
(3.3)
|
|
—
|
|
(3.3)
|
As adjusted
non-GAAP
|
$
(19.8)
|
|
$ (5.3)
|
|
$
(25.1)
|
|
$
(18.0)
|
|
$ (9.9)
|
|
$
(27.9)
|
Effective tax rate, as
reported
|
25.3 %
|
|
1.8 %
|
|
4.9 %
|
|
19.5 %
|
|
24.7 %
|
|
22.5 %
|
Effective tax rate, as
adjusted
|
29.3 %
|
|
24.8 %
|
|
28.2 %
|
|
27.5 %
|
|
24.4 %
|
|
26.3 %
|
AVANOS MEDICAL,
INC. NON-GAAP RECONCILIATIONS (unaudited) (in
millions, except per share amounts)
|
|
|
Net Income
(Loss)
|
|
Three Months Ended
December 31, 2023
|
|
Three Months Ended
December 31, 2022
|
|
Continuing
Operations
|
|
Disc.
Operations
|
|
Total
|
|
Continuing
Operations
|
|
Disc.
Operations
|
|
Total
|
As reported
|
$
11.0
|
|
$
(0.5)
|
|
$
10.5
|
|
$
9.7
|
|
$
7.2
|
|
$
16.9
|
Acquisition and
integration-related charges
|
0.9
|
|
—
|
|
0.9
|
|
0.4
|
|
—
|
|
0.4
|
Restructuring and
transformation charges
|
5.2
|
|
—
|
|
5.2
|
|
—
|
|
—
|
|
—
|
Divestiture related
charges
|
0.9
|
|
—
|
|
0.9
|
|
—
|
|
—
|
|
—
|
Estimated loss on
divestiture
|
—
|
|
(1.5)
|
|
(1.5)
|
|
—
|
|
—
|
|
—
|
EU MDR
Compliance
|
0.9
|
|
—
|
|
0.9
|
|
1.5
|
|
—
|
|
1.5
|
Litigation and
legal
|
1.5
|
|
—
|
|
1.5
|
|
—
|
|
—
|
|
—
|
Other items
|
—
|
|
—
|
|
—
|
|
3.8
|
|
—
|
|
3.8
|
Intangibles
amortization
|
6.5
|
|
—
|
|
6.5
|
|
7.2
|
|
0.5
|
|
7.7
|
Tax effects of
adjusting items
|
(10.3)
|
|
—
|
|
(10.3)
|
|
(1.9)
|
|
(0.9)
|
|
(2.8)
|
Tax effects of the
CARES Act and other
|
—
|
|
—
|
|
—
|
|
0.5
|
|
—
|
|
0.5
|
As adjusted
non-GAAP
|
$
16.6
|
|
$
(2.0)
|
|
$
14.6
|
|
$
21.2
|
|
$
6.8
|
|
$
28.0
|
Diluted (loss) earnings
per share, as reported
|
$
0.24
|
|
$
(0.01)
|
|
$
0.23
|
|
$
0.21
|
|
$
0.15
|
|
$
0.36
|
Diluted earnings per
share, as adjusted
|
$
0.36
|
|
$
(0.04)
|
|
$
0.32
|
|
$
0.45
|
|
$
0.15
|
|
$
0.60
|
|
|
Net (Loss)
Income
|
|
Year Ended December
31, 2023
|
|
Year Ended December
31, 2022
|
|
Continuing
Operations
|
|
Disc.
Operations
|
|
Total
|
|
Continuing
Operations
|
|
Disc.
Operations
|
|
Total
|
As reported
|
$
(9.9)
|
|
$
(51.9)
|
|
$
(61.8)
|
|
$
21.5
|
|
$
29.0
|
|
$
50.5
|
Acquisition and
integration-related charges
|
3.3
|
|
—
|
|
3.3
|
|
3.4
|
|
—
|
|
3.4
|
Restructuring and
transformation charges
|
28.2
|
|
—
|
|
28.2
|
|
—
|
|
—
|
|
—
|
Divestiture related
charges
|
6.0
|
|
0.8
|
|
6.8
|
|
—
|
|
—
|
|
—
|
Estimated loss on
divestiture
|
—
|
|
70.8
|
|
70.8
|
|
—
|
|
—
|
|
—
|
EU MDR
Compliance
|
3.7
|
|
—
|
|
3.7
|
|
6.9
|
|
—
|
|
6.9
|
Litigation and
legal
|
10.0
|
|
—
|
|
10.0
|
|
—
|
|
—
|
|
—
|
Other items
|
—
|
|
—
|
|
—
|
|
3.8
|
|
—
|
|
3.8
|
Intangibles
amortization
|
24.3
|
|
0.8
|
|
25.1
|
|
23.6
|
|
2.1
|
|
25.7
|
Loss on extinguishment
of debt
|
—
|
|
—
|
|
—
|
|
1.1
|
|
—
|
|
1.1
|
Tax effects of
adjusting items
|
(17.8)
|
|
(4.4)
|
|
(22.2)
|
|
(9.5)
|
|
(0.4)
|
|
(9.9)
|
Tax effects of the
CARES Act and other
|
—
|
|
—
|
|
—
|
|
(3.3)
|
|
—
|
|
(3.3)
|
As adjusted
non-GAAP
|
$
47.8
|
|
$
16.1
|
|
$
63.9
|
|
$
47.5
|
|
$
30.7
|
|
$
78.2
|
Diluted (loss) earnings
per share, as reported
|
$
(0.21)
|
|
$
(1.11)
|
|
$
(1.32)
|
|
$
0.46
|
|
$
0.61
|
|
$
1.07
|
Diluted earnings per
share, as adjusted
|
$
1.03
|
|
$
0.35
|
|
$
1.38
|
|
$
1.00
|
|
$
0.65
|
|
$
1.65
|
AVANOS MEDICAL,
INC. NON-GAAP RECONCILIATIONS (unaudited) (in
millions, except per share amounts)
|
|
|
Selling, General and
Administrative Expenses
|
|
Three Months Ended
December 31, 2023
|
|
Three Months Ended
December 31, 2022
|
|
Continuing
Operations
|
|
Disc.
Operations
|
|
Total
|
|
Continuing
Operations
|
|
Disc.
Operations
|
|
Total
|
As reported
|
$ 74.5
|
|
$ (0.7)
|
|
$ 73.8
|
|
$ 78.7
|
|
$
3.9
|
|
$ 82.6
|
Acquisition and
integration-related charges
|
(0.5)
|
|
—
|
|
(0.5)
|
|
(0.4)
|
|
—
|
|
(0.4)
|
Restructuring and
transformation charges
|
(2.0)
|
|
—
|
|
(2.0)
|
|
—
|
|
—
|
|
—
|
Divestiture related
charges
|
(0.9)
|
|
0.8
|
|
(0.1)
|
|
—
|
|
—
|
|
—
|
EU MDR
Compliance
|
(0.9)
|
|
—
|
|
(0.9)
|
|
(1.7)
|
|
—
|
|
(1.7)
|
Other items
|
—
|
|
—
|
|
|
|
(2.7)
|
|
—
|
|
(2.7)
|
Intangibles
amortization
|
(2.7)
|
|
—
|
|
(2.7)
|
|
(2.8)
|
|
(0.5)
|
|
(3.3)
|
As adjusted
non-GAAP
|
$ 67.5
|
|
$
0.1
|
|
$ 67.6
|
|
$ 71.1
|
|
$
3.4
|
|
$ 74.5
|
SG&A as a
percentage of revenue, as reported
|
43.0 %
|
|
(10.0) %
|
|
40.9 %
|
|
43.3 %
|
|
10.9 %
|
|
38.0 %
|
SG&A as a
percentage of revenue, as adjusted
|
38.9 %
|
|
1.4 %
|
|
37.5 %
|
|
39.2 %
|
|
9.5 %
|
|
34.2 %
|
|
|
Selling, General and
Administrative Expenses
|
|
Year Ended December
31, 2023
|
|
Year Ended December
31, 2022
|
|
Continuing
Operations
|
|
Disc.
Operations
|
|
Total
|
|
Continuing
Operations
|
|
Disc.
Operations
|
|
Total
|
As reported
|
$
335.0
|
|
$ 11.2
|
|
$
346.2
|
|
$
326.5
|
|
$ 15.4
|
|
$
341.9
|
Acquisition and
integration-related charges
|
(1.5)
|
|
—
|
|
(1.5)
|
|
(2.0)
|
|
—
|
|
(2.0)
|
Restructuring and
transformation charges
|
(22.5)
|
|
—
|
|
(22.5)
|
|
—
|
|
—
|
|
—
|
Divestiture related
charges
|
(6.0)
|
|
—
|
|
(6.0)
|
|
—
|
|
—
|
|
—
|
EU MDR
Compliance
|
(3.7)
|
|
—
|
|
(3.7)
|
|
(7.0)
|
|
—
|
|
(7.0)
|
Other items
|
—
|
|
—
|
|
—
|
|
(2.7)
|
|
—
|
|
(2.7)
|
Intangibles
amortization
|
(9.7)
|
|
(0.8)
|
|
(10.5)
|
|
(9.2)
|
|
(2.1)
|
|
(11.3)
|
As adjusted
non-GAAP
|
$
291.6
|
|
$ 10.4
|
|
$
302.0
|
|
$
305.6
|
|
$ 13.3
|
|
$
318.9
|
SG&A as a
percentage of revenue, as reported
|
49.8 %
|
|
11.1 %
|
|
44.7 %
|
|
47.7 %
|
|
11.3 %
|
|
41.7 %
|
SG&A as a
percentage of revenue, as adjusted
|
43.3 %
|
|
10.3 %
|
|
39.0 %
|
|
44.7 %
|
|
9.8 %
|
|
38.9 %
|
AVANOS MEDICAL,
INC. NON-GAAP RECONCILIATIONS (unaudited) (in
millions, except per share amounts)
|
|
|
EBITDA
|
|
Three Months Ended
December 31, 2023
|
|
Three Months Ended
December 31, 2022
|
|
Continuing
Operations
|
|
Disc.
Operations
|
|
Total
|
|
Continuing
Operations
|
|
Disc.
Operations
|
|
Total
|
Net income
(loss)
|
$
11.0
|
|
$
(0.5)
|
|
$
10.5
|
|
$
9.7
|
|
$
7.2
|
|
$
16.9
|
Interest expense,
net
|
2.3
|
|
—
|
|
2.3
|
|
2.3
|
|
—
|
|
2.3
|
Income tax benefit
(provision)
|
(2.1)
|
|
(1.3)
|
|
(3.4)
|
|
4.6
|
|
2.4
|
|
7.0
|
Depreciation
|
5.0
|
|
—
|
|
5.0
|
|
4.2
|
|
1.5
|
|
5.7
|
Amortization
|
6.5
|
|
—
|
|
6.5
|
|
7.2
|
|
0.5
|
|
7.7
|
EBITDA
|
22.7
|
|
(1.8)
|
|
20.9
|
|
28.0
|
|
11.6
|
|
39.6
|
Acquisition and
integration-related charges
|
0.9
|
|
—
|
|
0.9
|
|
0.4
|
|
—
|
|
0.4
|
Restructuring and
transformation charges
|
5.2
|
|
—
|
|
5.2
|
|
—
|
|
—
|
|
—
|
Divestiture related
charges
|
0.9
|
|
—
|
|
0.9
|
|
—
|
|
—
|
|
—
|
Estimated loss on
divestiture
|
—
|
|
(1.5)
|
|
(1.5)
|
|
—
|
|
—
|
|
—
|
EU MDR
Compliance
|
0.9
|
|
—
|
|
0.9
|
|
1.5
|
|
—
|
|
1.5
|
Other items
|
—
|
|
—
|
|
—
|
|
3.8
|
|
—
|
|
3.8
|
Litigation and
legal
|
1.5
|
|
—
|
|
1.5
|
|
—
|
|
—
|
|
—
|
Adjusted
EBITDA
|
$
32.1
|
|
$
(3.3)
|
|
$
28.8
|
|
$
33.7
|
|
$
11.6
|
|
$
45.3
|
|
|
EBITDA
|
|
Year Ended December
31, 2023
|
|
Year Ended December
31, 2022
|
|
Continuing
Operations
|
|
Disc.
Operations
|
|
Total
|
|
Continuing
Operations
|
|
Disc.
Operations
|
|
Total
|
Net (loss)
income
|
$
(9.9)
|
|
$
(51.9)
|
|
$
(61.8)
|
|
$
21.5
|
|
$
29.0
|
|
$
50.5
|
Interest expense,
net
|
12.1
|
|
—
|
|
12.1
|
|
8.8
|
|
—
|
|
8.8
|
Income tax benefit
(provision)
|
2.0
|
|
0.9
|
|
2.9
|
|
5.2
|
|
9.5
|
|
14.7
|
Depreciation
|
19.2
|
|
1.8
|
|
21.0
|
|
18.0
|
|
4.0
|
|
22.0
|
Amortization
|
24.3
|
|
0.8
|
|
25.1
|
|
23.6
|
|
2.1
|
|
25.7
|
EBITDA
|
47.7
|
|
(48.4)
|
|
(0.7)
|
|
77.1
|
|
44.6
|
|
121.7
|
Acquisition and
integration-related charges
|
3.3
|
|
—
|
|
3.3
|
|
3.4
|
|
—
|
|
3.4
|
Restructuring and
transformation charges
|
28.2
|
|
—
|
|
28.2
|
|
—
|
|
—
|
|
—
|
Divestiture related
charges
|
6.0
|
|
0.8
|
|
6.8
|
|
—
|
|
—
|
|
—
|
Estimated loss on
divestiture
|
—
|
|
70.8
|
|
70.8
|
|
—
|
|
—
|
|
—
|
EU MDR
Compliance
|
3.7
|
|
—
|
|
3.7
|
|
6.9
|
|
—
|
|
6.9
|
Other items
|
—
|
|
—
|
|
—
|
|
3.8
|
|
—
|
|
3.8
|
Litigation and
legal
|
10.0
|
|
—
|
|
10.0
|
|
—
|
|
—
|
|
—
|
Adjusted
EBITDA
|
$
98.9
|
|
$
23.2
|
|
$
122.1
|
|
$
91.2
|
|
$
44.6
|
|
$ 135.8
|
AVANOS MEDICAL,
INC. NON-GAAP RECONCILIATIONS (unaudited) (in
millions, except per share amounts)
|
|
|
Free Cash
Flow
|
|
Three Months Ended
December 31,
|
|
Year Ended December
31,
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
Cash provided by
operating activities
|
$
2.5
|
|
$
33.7
|
|
$
32.4
|
|
$
90.9
|
Capital
expenditures
|
(5.9)
|
|
(4.9)
|
|
(17.8)
|
|
(19.3)
|
Free Cash
Flow
|
$
(3.4)
|
|
$
28.8
|
|
$
14.6
|
|
$
71.6
|
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
|
Divestiture related
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)
|
|
|
As of December
31,
|
|
2023
|
|
2022
|
ASSETS
|
|
|
|
Current
Assets
|
|
|
|
Cash and cash
equivalents
|
$
87.7
|
|
$
127.7
|
Accounts receivable,
net of allowances
|
142.8
|
|
167.9
|
Inventories
|
163.2
|
|
132.3
|
Prepaid expenses and
other current assets
|
28.8
|
|
13.9
|
Assets held for
sale
|
64.5
|
|
182.3
|
Total Current
Assets
|
487.0
|
|
624.1
|
Property, Plant and
Equipment, net
|
117.2
|
|
118.6
|
Operating Lease
Right of Use Assets
|
26.8
|
|
27.5
|
Goodwill
|
796.1
|
|
760.3
|
Other Intangible
Assets, net
|
239.5
|
|
234.2
|
Deferred Tax
Assets
|
6.5
|
|
4.6
|
Other
Assets
|
19.3
|
|
17.6
|
TOTAL
ASSETS
|
$
1,692.4
|
|
$
1,786.9
|
|
|
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
Current
Liabilities
|
|
|
|
Current portion of
long-term debt
|
$
8.6
|
|
$
6.2
|
Current portion of
operating lease obligation
|
12.8
|
|
12.0
|
Trade accounts
payable
|
56.3
|
|
67.9
|
Accrued
expenses
|
93.2
|
|
97.8
|
Liabilities held for
sale
|
63.7
|
|
7.1
|
Total Current
Liabilities
|
234.6
|
|
191.0
|
Long-Term
Debt
|
159.4
|
|
226.3
|
Operating Lease
Obligation
|
28.3
|
|
32.5
|
Deferred Tax
Liabilities
|
23.8
|
|
25.4
|
Other Long-Term
Liabilities
|
10.0
|
|
20.5
|
TOTAL
LIABILITIES
|
456.1
|
|
495.7
|
Stockholders'
Equity
|
1,236.3
|
|
1,291.2
|
TOTAL LIABILITIES
AND STOCKHOLDERS' EQUITY
|
$
1,692.4
|
|
$
1,786.9
|
AVANOS MEDICAL,
INC. CONDENSED CONSOLIDATED CASH FLOW
STATEMENTS (unaudited) (in
millions)
|
|
|
Three Months Ended
December 31,
|
|
Year Ended December
31,
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
Operating
Activities
|
|
|
|
|
|
|
|
Net income
(loss)
|
$
10.5
|
|
$
16.9
|
|
$
(61.8)
|
|
$
50.5
|
Depreciation and
amortization
|
11.5
|
|
13.4
|
|
46.1
|
|
47.7
|
Loss on RH
disposal
|
(1.4)
|
|
—
|
|
70.8
|
|
—
|
Net loss on asset
dispositions
|
0.8
|
|
1.1
|
|
1.9
|
|
1.1
|
Changes in operating
assets and liabilities
|
(3.0)
|
|
(1.6)
|
|
(18.0)
|
|
(24.3)
|
Deferred income taxes
and other
|
(15.9)
|
|
3.9
|
|
(6.6)
|
|
15.9
|
Cash Provided by
Operating Activities
|
2.5
|
|
33.7
|
|
32.4
|
|
90.9
|
Investing
Activities
|
|
|
|
|
|
|
|
Capital
expenditures
|
(5.9)
|
|
(4.9)
|
|
(17.8)
|
|
(19.3)
|
Proceeds from the RH
divestiture
|
89.0
|
|
—
|
|
89.0
|
|
—
|
Acquisition of assets
and investments in businesses
|
(2.1)
|
|
—
|
|
(49.6)
|
|
(116.1)
|
Cash Provided by
Used in Investing Activities
|
81.0
|
|
(4.9)
|
|
21.6
|
|
(135.4)
|
Financing
Activities
|
|
|
|
|
|
|
|
Proceeds from issuance
of secured debt
|
—
|
|
—
|
|
—
|
|
250.0
|
Secured debt
repayments
|
(1.6)
|
|
(1.6)
|
|
(4.7)
|
|
(126.6)
|
Revolving credit
facility proceeds
|
—
|
|
—
|
|
55.0
|
|
150.0
|
Revolving credit
facility repayments
|
(95.0)
|
|
(20.0)
|
|
(115.0)
|
|
(170.0)
|
Purchase of treasury
stock
|
(6.2)
|
|
(0.4)
|
|
(19.1)
|
|
(45.5)
|
Payment of debt
issuance costs
|
—
|
|
—
|
|
—
|
|
(2.9)
|
Proceeds from the
exercise of stock options
|
(0.2)
|
|
0.1
|
|
1.3
|
|
1.7
|
Payment of contingent
consideration liabilities
|
(1.5)
|
|
—
|
|
(11.7)
|
|
—
|
Cash (Used in)
Provided by Financing Activities
|
(104.5)
|
|
(21.9)
|
|
(94.2)
|
|
56.7
|
Effect of Exchange
Rate Changes on Cash and Cash Equivalents
|
1.6
|
|
3.8
|
|
0.2
|
|
(3.0)
|
Increase in Cash and
Cash Equivalents
|
(19.4)
|
|
10.7
|
|
(40.0)
|
|
9.2
|
Cash and Cash
Equivalents - Beginning of Period
|
107.1
|
|
117.0
|
|
127.7
|
|
118.5
|
Cash and Cash
Equivalents - End of Period
|
$
87.7
|
|
$
127.7
|
|
$
87.7
|
|
$
127.7
|
AVANOS MEDICAL,
INC. SELECTED BUSINESS AND PRODUCTS
DATA (unaudited) (in millions)
|
|
|
Three Months Ended
December 31,
|
|
|
|
Year Ended December
31,
|
|
|
|
2023
|
|
2022
|
|
Change
|
|
2023
|
|
2022
|
|
Change
|
Digestive
health
|
$
94.8
|
|
$ 92.9
|
|
2.0 %
|
|
$
371.6
|
|
$
340.4
|
|
9.2 %
|
Pain Management and
Recovery:
|
|
|
|
|
|
|
|
|
|
|
|
Surgical pain and
recovery
|
35.6
|
|
41.3
|
|
(13.8) %
|
|
139.2
|
|
160.1
|
|
(13.1) %
|
Interventional
pain
|
42.9
|
|
47.4
|
|
(9.5) %
|
|
162.5
|
|
183.6
|
|
(11.5) %
|
Total Pain Management
and recovery
|
78.5
|
|
88.7
|
|
(11.5) %
|
|
301.7
|
|
343.7
|
|
(12.2) %
|
Total Net
Sales
|
$
173.3
|
|
$
181.6
|
|
(4.6) %
|
|
$
673.3
|
|
$
684.1
|
|
(1.6) %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
Volume
|
|
Pricing/Mix
|
|
Currency
|
|
Other
|
|
|
Net Sales - percentage
change - QTD
|
(4.6) %
|
|
(4.3) %
|
|
(0.8) %
|
|
0.5 %
|
|
— %
|
|
|
Net Sales - percentage
change - YTD
|
(1.6) %
|
|
(1.7) %
|
|
0.3 %
|
|
(0.2) %
|
|
— %
|
|
|
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SOURCE Avanos Medical