Core Viewpoint - Avanos Medical, Inc. will host a conference call to discuss its financial results and business highlights for Q1 2025 on May 6, 2025, at 9 a.m. ET, with a news release to be issued before market opening on the same day [1]. Group 1 - The conference call will be led by key executives including the CEO, interim CFO, senior VP of strategy and corporate development, and the board chairman [2]. - Participants can join the conference call via a registration link or by dialing specific phone numbers [3]. - A simultaneous webcast of the call will be available on the Avanos Medical website, with a replay accessible within two hours post-call for one week [4]. Group 2 - Avanos Medical is a medical technology company focused on providing clinically superior medical device solutions, addressing critical healthcare needs such as nutrition support and opioid reduction [5]. - The company is headquartered in Alpharetta, Georgia, and holds leading market positions in various product categories [5].

Avanos Medical, Inc. (AVNS) is set to assume direct control of sales and distribution for its MIC-KEY enteral feeding products in the United Kingdom, effective July 2025. This marks a strategic departure from its longstanding reliance on Vygon UK, which has served as the product distributor for nearly three decades.The decision underscores Avanos' intention to strengthen its market presence by establishing direct relationships with healthcare providers and refining its service delivery. By internalizing sal ...

ZAVENTEM, Belgium, April 2, 2025 /PRNewswire/ -- Avanos Medical, Inc. (NYSE: AVNS) a global medical technology company, today announced that it will take direct responsibility for the sales and distribution of its MIC-KEY enteral feeding products in the United Kingdom, effective 25 July 2025. This strategic move reflects Avanos' commitment to prioritizing customer needs, enhancing product availability into the future, and providing a seamless experience for healthcare providers and patients. For the past 29 ...

ALPHARETTA, Ga., March 17, 2025 /PRNewswire/ -- Avanos Medical, Inc. (NYSE: AVNS), a leading medical technology company, today announced the appointment of David Pacitti as its new chief executive officer, effective April 14, 2025. Pacitti joins Avanos with a distinguished career in the healthcare sector, most recently serving as president of Siemens Medical Solutions USA, Inc. and Head of the Americas, Siemens Healthineers. In this capacity, he played a pivotal role in driving strategic growth and operatio ...

Here are three stocks added to the Zacks Rank #5 (Strong Sell) List today:Avanos Medical, Inc. (AVNS) is a medical technology company focusing on delivering medical device solutions. The Zacks Consensus Estimate for its current year earnings has been revised 18.5% downward over the last 60 days.CSX Corporation (CSX) is a rail-based freight transportation services company. The Zacks Consensus Estimate for its current year earnings has been revised 9.4% downward over the last 60 days.Constellation Brands, Inc ...

Avanos Medical, Inc. (AVNS) reported fourth-quarter 2024 adjusted earnings per share (EPS) from continuing operations of 43 cents, up 19.4% year over year. The bottom line surpassed the Zacks Consensus Estimate by 7.5%.Find the latest EPS estimates and surprises on Zacks Earnings Calendar.GAAP loss per share from continuing operations in the quarter under review was $8.63 against the year-ago period’s EPS of 24 cents.Full-year 2024 adjusted EPS was $1.35, up 31.1% from a year ago. The metric topped the Zack ...

Acquisitions and Divestitures - Avanos Medical, Inc. reported a purchase price of approximately $53.0 million for the acquisition of Diros Technology Inc., with an additional contingent cash consideration of up to $7.0 million based on performance objectives[14]. - The company completed the acquisition of OrthogenRx, Inc. for a purchase price of $130.0 million, aimed at expanding its portfolio in knee pain treatments[15]. - Avanos divested its Respiratory Health business for $110.0 million in cash, part of a three-year transformation process initiated in January 2023 to focus on core markets[16][17]. - The company acquired $33.4 million of goodwill in conjunction with the acquisition of Diros Technology Inc.[279]. - The total purchase price for the OrthogenRx Acquisition was $130.0 million in cash, with an additional $30.0 million contingent on net sales growth during 2022 and 2023[309]. Financial Performance - Net sales for the year ended December 31, 2024, were $687.8 million, a slight increase from $673.3 million in 2023[229]. - Gross profit for 2024 was $381.3 million, compared to $379.7 million in 2023, indicating a stable gross margin[229]. - The company reported a net loss of $392.1 million in 2024, significantly higher than the net loss of $61.8 million in 2023[231]. - Operating loss for 2024 was $396.2 million, a decline from an operating income of $4.2 million in 2023[229]. - The company’s accumulated deficit grew to $707.0 million in 2024 from $314.9 million in 2023, highlighting ongoing financial challenges[234]. - Total stockholders' equity decreased to $828.5 million in 2024 from $1,236.3 million in 2023, reflecting the impact of net losses[234]. - The company incurred a goodwill and intangibles impairment of $436.7 million in 2024, which significantly impacted overall financial performance[229]. - Cash provided by operating activities increased to $100.7 million in 2024 from $32.4 million in 2023[237]. - The total income (loss) before income taxes was $(403.3) million, a significant decline from $(7.9) million in 2023[327]. - The effective tax rate for 2024 was 4.2%, compared to (25.3)% in 2023, indicating a substantial change in tax liabilities[330]. Research and Development - Research and development costs were $26.2 million in 2024, down from $27.2 million in 2023 and $29.2 million in 2022, indicating a trend in cost management[25]. - The company launched two new products in the global market in 2024, reflecting ongoing innovation efforts[24]. - Research and development expenses decreased to $26.2 million in 2024 from $27.2 million in 2023[229]. - Research and development expenses are expensed as incurred, primarily consisting of salaries, product trial costs, and laboratory fees[262]. Market and Sales Strategy - Approximately 50% of net sales in North America were made through distributors in 2024, with sales to McKesson Corporation and Medline Industries accounting for 18% and 17% of consolidated net sales, respectively[20]. - In 2024, approximately 28% of global net sales were contracted through Group Purchasing Organizations (GPOs), highlighting the importance of these agreements in sales strategy[22]. - The company faced significant competition in both U.S. and international markets, particularly from major players like Boston Scientific Corporation and Medtronic plc in its key segments[23]. - Digestive Health product sales increased to $396.4 million in 2024 from $371.6 million in 2023, while Pain Management and Recovery sales decreased to $291.4 million from $301.7 million[365]. - The company had net sales to external customers in the United States of $529.1 million in 2024, up from $467.0 million in 2023[371]. Compliance and Regulatory Environment - Compliance with healthcare regulations significantly increases the time, difficulty, and costs associated with obtaining and maintaining product approvals, particularly in the U.S. where 510(k) clearance is required[31]. - The EU Medical Device Regulation (EU MDR) adopted in 2021 mandates re-certification of many products to enhanced standards, with a transition period ending December 31, 2027, or December 31, 2028, depending on device classification[33]. - The company is committed to compliance with environmental, health, and safety regulations, although future changes in laws may incur additional costs[41]. Employee and Demographics - Employee demographics as of December 31, 2024, show a total of 2,227 global employees, with 55.6% located in Mexico and 35.3% in the United States[43]. - Women represent 49.6% of global salaried employees, while 30.8% of U.S. salaried employees are ethnically diverse[52]. - The company has implemented a multi-tiered employee retention strategy, including enhanced compensation and flexible work arrangements[47]. Financial Risks and Currency Management - A one percentage point increase in SOFR could result in an incremental interest expense of $3.8 million if the senior secured revolving credit facility of $375 million is fully drawn for the entire year[220]. - A 10% change in foreign currency exchange rates could impact the consolidated financial position by approximately $0.9 million based on balance sheet transactional exposures as of December 31, 2024[223]. - A 10% change in exchange rates could affect stockholders' equity by approximately $15.3 million due to translation adjustments of non-U.S. operations[225]. - The company employs derivative instruments for risk management purposes to mitigate foreign currency and commodity price risks[218]. - The company began entering into derivative instruments to hedge forecasted cash flows in Mexican pesos, with a derivative liability of $0.6 million as of December 31, 2024[358]. - The aggregate notional values of outstanding foreign currency swap contracts designated as cash flow hedges were $3.6 million as of December 31, 2024[359]. Assets and Liabilities - Total assets decreased to $1,154.2 million in 2024 from $1,692.4 million in 2023, reflecting a significant reduction in goodwill and intangible assets[233]. - Cash and cash equivalents increased to $107.7 million in 2024 from $87.7 million in 2023, indicating improved liquidity[233]. - The liability for estimated distributor rebates rose to $13.3 million in 2024 from $10.4 million in 2023, reflecting approximately 54% of consolidated net sales[256]. - The liability for estimated incentives increased to $10.9 million in 2024 from $7.3 million in 2023, with approximately 28% of consolidated net sales contracted through group purchasing organizations[257]. - Total estimated liabilities for accrued rebates and incentives were $24.3 million, up from $17.8 million in 2023[366]. Impairments and Restructuring - In the fourth quarter of 2024, the company recorded an impairment loss of $100.2 million on the HA asset group due to lower net sales and margin expectations[276]. - During the fourth quarter of 2024, the company recorded a goodwill impairment of $336.5 million, reflecting a decrease in market capitalization[277]. - The total restructuring costs for the year ended December 31, 2024, amounted to $8.1 million, with $8.9 million incurred for the post-RH Divestiture Restructuring Plan[281]. - The company expects to incur between $10.0 million and $11.0 million in cash expenses related to the post-RH Divestiture restructuring plan, expected to be completed by the end of 2025[282]. - The restructuring liability balance at the end of 2024 was $3.8 million, compared to $2.3 million at the end of 2023[288].

Avanos Medical Inc. (NYSE:AVNS) Q4 2024 Earnings Conference Call February 26, 2025 9:00 AM ET Company Participants Scott Galovan - Vice President of Strategy & Corporate Development Michael Greiner - Interim Chief Executive Officer Conference Call Participants Danny Stauder - Citizens GMP Operator Good morning, ladies and gentlemen. Welcome to the Avanos Medical, Inc. fourth quarter 2024 earnings call. At this time, all lines are in listen-only mode. Following the presentation, we will conduct a question an ...

Avanos Medical (AVNS) came out with quarterly earnings of $0.43 per share, beating the Zacks Consensus Estimate of $0.40 per share. This compares to earnings of $0.36 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 7.50%. A quarter ago, it was expected that this medical technology company would post earnings of $0.36 per share when it actually produced earnings of $0.36, delivering no surprise.Over the last four quarters, the ...

Financial Performance - Fourth quarter net sales from continuing operations totaled $179.6 million, a 3.6% increase from the prior year[5] - For the full year, net sales from continuing operations increased 2.2% to $687.8 million[10] - Fourth quarter diluted loss per share from continuing operations was $8.63, compared to diluted earnings per share of $0.24 a year ago[5] - Adjusted EBITDA for the fourth quarter was $28.6 million, compared to $32.1 million in the prior year[9] - Free cash flow for the fourth quarter was $53.1 million, compared to an outflow of $3.4 million in the same quarter last year[15] - The company expects 2025 net sales to be between $665 million and $685 million, with adjusted diluted earnings per share expected to be between $1.05 to $1.25[18] - Operating loss in 2024 was $396.2 million, compared to operating profit of $4.2 million in the prior year[13] - The company reported a net loss of $397.3 million for the three months ended December 31, 2024, compared to a net income of $10.5 million in the same period of 2023[31] - The adjusted non-GAAP operating profit for the year ended December 31, 2024, was $79.6 million, a decrease of 21.4% from $101.1 million in 2023[40] - The company reported a total operating loss of $403.9 million for the year ended December 31, 2024, compared to a total loss of $46.8 million in 2023[40] Impairments and Charges - The company recorded a non-cash impairment charge of $436.7 million during the fourth quarter due to revised revenue and margin projections[14] - The company incurred a goodwill and intangibles impairment of $436.7 million for the year ended December 31, 2024[31] - Goodwill and intangibles impairment for the year ended December 31, 2024, amounted to $436.7 million, with no corresponding impairment reported in 2023[40] - The company incurred restructuring and transformation charges of $6.0 million for the three months ended December 31, 2024, compared to $5.2 million in the same period of 2023[37] - Acquisition and integration-related charges for the year ended December 31, 2024, were $4.2 million, up from $3.3 million in 2023[40] Sales and Revenue Breakdown - Digestive health segment reported net sales of $105.8 million for Q4 2024, an increase of 11.6% compared to $94.8 million in Q4 2023[58] - Total Pain Management and Recovery segment saw a decline in Q4 2024 net sales to $73.8 million, down 6.0% from $78.5 million in Q4 2023[58] - Total net sales for Q4 2024 reached $179.6 million, reflecting a 3.6% increase from $173.3 million in Q4 2023[58] - Year-to-date (YTD) total net sales for 2024 were $687.8 million, a 2.2% increase from $673.3 million in 2023[58] - The percentage change in net sales for QTD was driven by a volume increase of 6.2%, offset by a pricing/mix decline of 3.0%[58] - Interventional pain segment reported a slight increase in Q4 2024 net sales to $43.5 million, up 1.4% from $42.9 million in Q4 2023[58] - Surgical pain and recovery segment experienced a decline in Q4 2024 net sales to $30.3 million, down 14.9% from $35.6 million in Q4 2023[58] - The total pain management and recovery segment's YTD sales decreased to $291.4 million, down 3.4% from $301.7 million in 2023[58] Cash Flow and Debt - As of December 31, 2024, net debt was $27.0 million, down from $80.3 million in the prior year[5] - Cash provided by operating activities for the year ended December 31, 2024, was $100.7 million, up from $32.4 million in 2023[56] - The company had cash and cash equivalents of $107.7 million as of December 31, 2024, compared to $87.7 million in 2023[54] - Free cash flow for the three months ended December 31, 2024, was $53.1 million, compared to a negative free cash flow of $3.4 million in the same period of 2023[50] Margins and Expenses - Gross margin for 2024 was 55.4%, compared to 56.4% in 2023[11] - Gross profit for the same period was $98.0 million, compared to $95.0 million in 2023, reflecting a gross profit margin of 54.6%[31] - Selling, General and Administrative (SG&A) expenses for the three months ended December 31, 2024, were $79.7 million, up from $73.8 million in the same period of 2023[46] - SG&A as a percentage of revenue, as reported, was 44.4% for the three months ended December 31, 2024, compared to 40.9% in 2023[46] - The gross profit margin as adjusted for the year ended December 31, 2024, was 59.0%[35] Tax and Compliance - The effective tax rate for the year ended December 31, 2024, as reported, was 24.7%, compared to an effective tax rate of -4.9% for 2023[42] - The company expects continued focus on EU MDR compliance, with related costs of $6.2 million for the year ended December 31, 2024[44] - EU MDR Compliance related charges for the three months ended December 31, 2024, were $1.8 million, compared to $0.9 million in 2023[40]