Financial Performance - Net income for the three months ended March 31, 2025, was $6.6 million, compared to a net loss of $0.9 million for the same period in 2024[14] - Total comprehensive income for the same period was $8.9 million, an increase from a comprehensive loss of $3.4 million in 2024[14] - Cash provided by operating activities was $25.7 million for the three months ended March 31, 2025, compared to cash used in operating activities of $8.0 million in 2024[19] - The company reported net sales of $157.4 million for the three months ended March 31, 2025, compared to $150.9 million for the same period in 2024, representing a year-over-year increase of approximately 4.0%[33] - The company’s total consolidated net sales for Q1 2025 were $167.5 million, compared to $166.1 million in Q1 2024, reflecting a slight increase of approximately 0.8%[33] - Specialty Nutrition Systems segment reported sales of $101.1 million for the three months ended March 31, 2025, an increase of 6.9% from $94.6 million in 2024[77] - Pain Management and Recovery segment sales remained stable at $56.2 million for the three months ended March 31, 2025, compared to $56.3 million in 2024[77] Assets and Liabilities - Cash and cash equivalents decreased to $97.0 million as of March 31, 2025, down from $107.7 million at the end of 2024[16] - Total assets decreased to $1,107.8 million as of March 31, 2025, from $1,154.2 million at the end of 2024[16] - Total liabilities decreased to $268.4 million as of March 31, 2025, from $325.7 million at the end of 2024[16] - Stockholders' equity increased to $839.4 million as of March 31, 2025, compared to $828.5 million at the end of 2024[16] - Total long-term debt, net, as of March 31, 2025, is $98.0 million, down from $125.3 million on December 31, 2024[55] - The current portion of long-term debt is $9.4 million as of March 31, 2025[59] Expenses and Costs - Capital expenditures for the same period were $6.7 million, up from $4.1 million in 2024[19] - The company incurred $3.1 million in restructuring costs related to the post-RH divestiture plan during Q1 2025, compared to $0.7 million in Q1 2024, reflecting an increase of approximately 342.9%[35] - Stock-based compensation expense increased to $3.8 million for the three months ended March 31, 2025, from $3.6 million in 2024[62] - The company expects to incur up to $16.0 million in cash expenses related to the restructuring plan, primarily for employee termination benefits and temporary labor costs[35] Receivables and Inventories - The company reported a decrease in accounts receivable of $25.1 million for the three months ended March 31, 2025[19] - Total accounts receivable decreased to $104.8 million as of March 31, 2025, down from $132.8 million at the end of 2024, a decline of approximately 21.1%[39] - The company reported total inventories of $138.1 million as of March 31, 2025, slightly down from $138.8 million at the end of 2024, a decrease of approximately 0.5%[40] Depreciation and Amortization - Depreciation expense for Q1 2025 was $4.5 million, a decrease from $5.3 million in Q1 2024, representing a reduction of approximately 15.0%[41] - Amortization expense for intangible assets was $5.1 million for the three months ended March 31, 2025, down from $6.1 million for the same period in 2024[43] - Estimated amortization expense for the remainder of 2025 is $20.5 million, with a total estimated amortization of $107.2 million over the next five years[43] Other Financial Information - The company closed the sale of its Respiratory Health business for $110 million in cash on October 2, 2023[46] - The company repaid $2.3 million of the Term Loan Facility and $25.0 million of the Revolving Credit Facility during the three months ended March 31, 2025[60] - The restructuring liability balance as of March 31, 2025, was $1.9 million, down from $3.8 million at the end of 2024[38] - The company had letters of credit outstanding of $4.0 million as of March 31, 2025[60] - As of March 31, 2025, the aggregate notional values of outstanding foreign currency swap contracts designated as cash flow hedges were $30.8 million[72] - The company recorded a change in Accumulated Other Comprehensive Loss of $2.3 million for the three months ended March 31, 2025, compared to a loss of $2.5 million in 2024[8] - The company incurred no costs related to indemnification matters for the three months ended March 31, 2025[63] - The company had no repurchases of common stock in the three months ended March 31, 2025, but repurchased 342,680 shares for $6.7 million in the first quarter of 2024[82] Strategic Focus - The company is focused on addressing healthcare needs, including providing nutrition solutions and reducing opioid use[21] - The company adopted ASU No. 2023-05 effective January 1, 2025, which did not have a material effect on its financial position or results of operations[29]

Financial Data and Key Metrics Changes - The company achieved sales of approximately $168 million for Q1 2025, with organic sales up 2.8% compared to the previous year [10] - Adjusted diluted earnings per share were $0.26, and adjusted EBITDA was approximately $22 million, with adjusted gross margins at 56.7% [10] - The balance sheet remains strong with $97 million in cash and $107 million in debt outstanding as of March 31 [10] Business Line Data and Key Metrics Changes - Specialty Nutrition Systems segment grew almost 9% organically compared to the prior year, reaffirming its number one position in long-term, short-term, and neonatal internal feeding [14] - Pain Management and Recovery segment saw normalized organic sales up 2.4%, with near double-digit growth in the radiofrequency ablation business [16][17] - Operating profit for the Specialty Nutrition Systems segment was nearly 21%, a 460 basis point increase from the prior year [15] Market Data and Key Metrics Changes - The company anticipates a softer Q2 for the Specialty Nutrition Systems segment due to distributor order timing but remains confident in the segment's strength for the rest of the year [19] - The company incurred $1.5 million in tariffs during Q1, with an estimated $15 million in incremental tariff-related manufacturing costs for the year [21][22] Company Strategy and Development Direction - The company is focused on enhancing its growth profile through transformation efforts, capital deployment for M&A, and partnerships [7][11] - The organizational focus has been refined to ensure clarity in strategic business priorities for 2025, aiming for margin expansion and improved patient and customer experience [11][12] - The company plans to transition all syringe manufacturing and supply chain operations out of China by the first half of 2026 in response to tariffs [19] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the strong start to the year, particularly in strategic segments, while acknowledging the dynamic economic environment [23] - The revised adjusted EPS estimate reflects a reasonable view of the tariff impact on full-year results, with ongoing monitoring of the situation [23] Other Important Information - The company has closed two smaller transactions this year that support its specialty nutrition system strategy [11] - The new operating segments are expected to provide improved visibility and highlight the financial profiles of the two segments [13] Q&A Session Summary Question: How does the company view the second quarter relative to the first? - Management indicated that while the second quarter may see a slight decline due to distributor order dynamics, they maintain confidence in the full-year guidance [30][31] Question: Can you elaborate on the tariff assumptions and their impact? - Management expects approximately $15 million in incremental tariff-related manufacturing costs for the year, with strategies in place to mitigate these impacts [41][44] Question: What are the growth expectations for the segments moving forward? - Management anticipates mid-single-digit growth for the Specialty Nutrition Systems segment and flat to low single-digit growth for the Pain Management and Recovery segment for the year [51][53]

Q1 2025 Financial Performance - Net sales increased to $168 million in Q1 2025 from $166 million in Q1 2024, representing a 2.8% organic growth[19] - Adjusted EPS grew by 18% from $0.22 in Q1 2024 to $0.26 in Q1 2025[19] - The company generated $19 million of free cash flow during the quarter[22] - Net debt decreased to $10 million as of March 31, 2025, compared to $27 million as of December 31, 2024[21] Segment Performance - Specialty Nutrition Systems net sales increased to $101 million in Q1 2025 from $95 million in Q1 2024, reflecting a 9.4% organic growth[27] - Specialty Nutrition Systems operating profit increased by 37% from $15 million in Q1 2024 to $21 million in Q1 2025[29] - Pain Management & Recovery segment net sales remained stable at $56 million in Q1 2025, showing a 1.1% organic growth[33] - Pain Management & Recovery segment operating profit improved from -$2 million in Q1 2024 to $0 million in Q1 2025[34] 2025 Outlook - The company maintains its sales estimate of $665 million to $685 million[44] - The company lowered its adjusted diluted EPS estimate to $0.75 to $0.95, primarily due to tariff impacts[45]

Avanos Medical (AVNS) came out with quarterly earnings of $0.26 per share, beating the Zacks Consensus Estimate of $0.19 per share. This compares to earnings of $0.22 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 36.84%. A quarter ago, it was expected that this medical technology company would post earnings of $0.40 per share when it actually produced earnings of $0.43, delivering a surprise of 7.50%.Over the last four quart ...

Avanos Medical (AVNS) Q1 2025 Earnings Call May 06, 2025 09:00 AM ET Speaker0 Good morning, ladies and gentlemen, and welcome to the Avanus Medical Avanus First Quarter twenty twenty five Earnings Call. At this time, all lines are in listen only mode. Following the presentation, we will conduct a question and answer session. If at any time during this call, This call is being recorded on Tuesday, 05/06/2025. I would now like to turn the conference over to Scott Gullivan. Please go ahead. Speaker1 Good morni ...

Avanos Medical, Inc. First Quarter 2025 Results [Executive Summary and Financial Highlights](index=1&type=section&id=Executive%20Summary%20and%20Financial%20Highlights) Avanos Medical Q1 2025 net sales $167.5 million (+0.8%), net income $6.6 million, adjusted diluted EPS $0.26, showing improved profitability - The new CEO, David Pacitti, noted that transformation efforts in portfolio, structure, and cost management have positioned Avanos for **accelerated growth, improved execution, and enhanced margin profiles**[3](index=3&type=chunk) Q1 2025 Financial Highlights vs. Q1 2024 | Metric | Q1 2025 | Q1 2024 | Change | | :--- | :--- | :--- | :--- | | Net Sales | $167.5M | $166.1M | +0.8% | | Net Income (from continuing ops) | $6.6M | $0.5M | +1220% | | Adjusted Net Income | $12.0M | $10.1M | +18.8% | | Diluted EPS | $0.14 | $0.01 | +1300% | | Adjusted Diluted EPS | $0.26 | $0.22 | +18.2% | | Adjusted EBITDA | $21.6M | $21.6M | 0.0% | [Consolidated Operating Results](index=1&type=section&id=Consolidated%20Operating%20Results) Q1 2025 net sales rose 0.8% to $167.5 million, organic sales up 2.8%; gross margin fell to 53.6%, but operating income doubled to $10.3 million from reduced expenses - Organic net sales grew **2.8%** year-over-year, adjusted for foreign currency effects and the decision to exit certain low-return revenue streams[5](index=5&type=chunk) - Adjusted gross margin fell to **56.7%** from **59.8%** in the prior year, impacted by unfavorable pricing for hyaluronic acid ("HA") products[6](index=6&type=chunk) - Selling and general expenses as a percentage of net sales decreased to **45.2%** from **50.3%** a year ago, mainly due to lower costs from restructuring and divestiture activities[6](index=6&type=chunk) - Operating income increased to **$10.3 million** compared to **$4.0 million** in the prior year period. On an adjusted basis, operating income was **$17.1 million**, up from **$16.3 million**[8](index=8&type=chunk) [Business Segment Performance](index=2&type=section&id=Business%20Segment%20Performance) SNS sales grew 6.9% to $101.1 million with 37% operating income rise; PM&R sales flat at $56.2 million, swinging to $0.2 million operating profit Q1 2025 Net Sales by Segment (in millions) | Segment | Q1 2025 | Q1 2024 | % Change | | :--- | :--- | :--- | :--- | | Specialty Nutrition Systems | $101.1 | $94.6 | +6.9% | | Pain Management and Recovery | $56.2 | $56.3 | -0.2% | | Corporate and Other | $10.2 | $15.2 | -32.9% | | **Total Net Sales** | **$167.5** | **$166.1** | **+0.8%** | Q1 2025 Operating Income (Loss) by Segment (in millions) | Segment | Q1 2025 | Q1 2024 | % Change | | :--- | :--- | :--- | :--- | | Specialty Nutrition Systems | $21.1 | $15.4 | +37.0% | | Pain Management and Recovery | $0.2 | $(2.1) | N/A | | Corporate and Other | $(11.0) | $(9.3) | +18.3% | | **Total Operating Income** | **$10.3** | **$4.0** | **+157.5%** | [Specialty Nutrition Systems (SNS)](index=2&type=section&id=Specialty%20Nutrition%20Systems%20%28SNS%29) SNS net sales reached $101.1 million (+6.9%), driven by 8.7% volume growth, with operating income rising to $21.1 million (20.9% margin) from higher volume and lower SG&A - SNS net sales reached **$101.1 million**, with strong **8.7% volume growth** driven by continued demand in both enteral feeding and neonate solutions categories[10](index=10&type=chunk) - Operating income for the SNS segment was **$21.1 million**, or **20.9%** of its net sales, due to higher volume and reduced selling, general and administrative expenses[10](index=10&type=chunk) [Pain Management and Recovery (PM&R)](index=2&type=section&id=Pain%20Management%20and%20Recovery%20%28PM%26R%29) PM&R net sales were $56.2 million; 8.2% RFA growth offset by 9.3% surgical pain decline and currency, resulting in $0.2 million operating profit from reduced SG&A - Net sales of radiofrequency ablation (RFA) products grew **8.2%**, driven by momentum in generator sales (ESENTEC and TRIDENT lines)[11](index=11&type=chunk) - Surgical pain and recovery net sales declined **9.3%**, which was in line with company expectations[11](index=11&type=chunk) - The segment achieved an operating profit of **$0.2 million**, compared to a loss of **$2.1 million** last year, due to lower SG&A expenses[11](index=11&type=chunk) [Cash Flow and Balance Sheet](index=2&type=section&id=Cash%20Flow%20and%20Balance%20Sheet) As of March 31, 2025, cash was $97.0 million; operating cash flow was a $25.7 million inflow, reversing an $8.0 million outflow, leading to $19.0 million free cash flow, with total debt reduced to $107.4 million - Cash on hand was **$97.0 million** as of March 31, 2025, down from **$107.7 million** at year-end 2024[12](index=12&type=chunk) - Total debt outstanding was reduced by **$27.3 million** during the quarter, from **$134.7 million** to **$107.4 million**[12](index=12&type=chunk) Cash Flow Summary (in millions) | Metric | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Cash flow from operations | $25.7 | $(8.0) | | Free cash flow | $19.0 | $(12.1) | [2025 Outlook](index=2&type=section&id=2025%20Outlook) Avanos maintains 2025 revenue guidance of $665 million-$685 million but lowered adjusted diluted EPS forecast to $0.75-$0.95 due to anticipated negative tariff impacts - The company is maintaining its 2025 estimated revenue of between **$665 million** and **$685 million**[13](index=13&type=chunk) - The estimated adjusted diluted earnings per share range for 2025 has been lowered to between **$0.75** and **$0.95**, primarily due to the impact of recently announced tariffs[13](index=13&type=chunk) - The ultimate impact from tariffs remains uncertain and depends on factors like final tariff rates on China-origin goods, mitigation efforts, and the level of imports from China and Mexico[14](index=14&type=chunk) 2025 Adjusted Diluted EPS Outlook Reconciliation | Metric | Estimated Range | | :--- | :--- | | Diluted earnings per share (GAAP) | $0.33 to $0.56 | | Intangibles amortization | $0.25 to $0.24 | | Post RH-Divestiture transition charges | $0.12 to $0.10 | | Other | $0.05 to $0.05 | | **Adjusted diluted earnings per share (non-GAAP)** | **$0.75 to $0.95** | [Financial Statements and Supplemental Data](index=5&type=section&id=Financial%20Statements%20and%20Supplemental%20Data) [Condensed Consolidated Income Statements](index=5&type=section&id=Condensed%20Consolidated%20Income%20Statements) Details revenues, costs, expenses, net income, and EPS for Q1 2025 compared to Q1 2024 Condensed Consolidated Income Statement (in millions, except per share) | Metric | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Net Sales | $167.5 | $166.1 | | Gross Profit | $89.8 | $94.8 | | Operating Income | $10.3 | $4.0 | | Income from Continuing Operations | $6.6 | $0.5 | | Net Income (Loss) | $6.6 | $(0.9) | | Diluted EPS (Continuing ops) | $0.14 | $0.01 | [Condensed Consolidated Balance Sheets](index=15&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Presents the company's financial position, detailing assets, liabilities, and equity as of March 31, 2025, compared to December 31, 2024 Condensed Consolidated Balance Sheet (in millions) | Metric | Mar 31, 2025 | Dec 31, 2024 | | :--- | :--- | :--- | | **ASSETS** | | | | Cash and cash equivalents | $97.0 | $107.7 | | Total Current Assets | $352.4 | $393.4 | | TOTAL ASSETS | $1,107.8 | $1,154.2 | | **LIABILITIES & EQUITY** | | | | Total Current Liabilities | $137.2 | $165.9 | | Long-Term Debt | $98.0 | $125.3 | | TOTAL LIABILITIES | $268.4 | $325.7 | | Stockholders' Equity | $839.4 | $828.5 | | TOTAL LIABILITIES AND EQUITY | $1,107.8 | $1,154.2 | [Condensed Consolidated Cash Flow Statements](index=16&type=section&id=Condensed%20Consolidated%20Cash%20Flow%20Statements) Details cash inflows and outflows from operating, investing, and financing activities for Q1 2025 and Q1 2024 Condensed Consolidated Cash Flow Statement (in millions) | Metric | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Cash Provided by (Used in) Operating Activities | $25.7 | $(8.0) | | Cash Used in Investing Activities | $(9.1) | $(2.0) | | Cash Used in Financing Activities | $(29.1) | $(0.7) | | Decrease in Cash and Cash Equivalents | $(10.7) | $(11.9) | | Cash and Cash Equivalents - End of Period | $97.0 | $75.8 | [Non-GAAP Reconciliations](index=3&type=section&id=Non-GAAP%20Reconciliations) Provides detailed reconciliations of GAAP to non-GAAP financial measures, including adjusted gross profit, operating income, net income, EPS, EBITDA, and free cash flow, for a clearer view of ongoing operational performance - The company uses non-GAAP measures to **evaluate historical and prospective financial performance, allocate resources, and measure operational performance of business units**. These measures are also used for **setting incentive compensation goals**[16](index=16&type=chunk)[17](index=17&type=chunk) Reconciliation of Net Income to Adjusted EBITDA (in millions) | Metric | Q1 2025 | Q1 2024 (Continuing Ops) | | :--- | :--- | :--- | | Net income (loss) | $6.6 | $0.5 | | Interest expense, net | $0.6 | $2.5 | | Income tax provision | $3.1 | $1.0 | | Depreciation & Amortization | $9.6 | $11.4 | | **EBITDA** | **$19.9** | **$15.4** | | Restructuring & Divestiture Charges | $3.1 | $4.6 | | Other Adjustments (EU MDR, Legal, etc.) | $(1.4) | $1.6 | | **Adjusted EBITDA** | **$21.6** | **$21.6** | Reconciliation of GAAP to Non-GAAP Diluted EPS | Metric | Q1 2025 | Q1 2024 (Continuing Ops) | | :--- | :--- | :--- | | Diluted EPS, as reported (GAAP) | $0.14 | $0.01 | | Adjustments (Restructuring, Amortization, etc.) | $0.12 | $0.21 | | **Diluted EPS, as adjusted (Non-GAAP)** | **$0.26** | **$0.22** |

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 ...

Company Overview - Avanos Medical, Inc. is a global medical technology company focused on delivering clinically superior medical device solutions, headquartered in Alpharetta, Georgia [4] - The company is committed to addressing important healthcare needs, including providing nutrition to patients and reducing opioid use [4] Strategic Move - Avanos will take direct responsibility for the sales and distribution of its MIC-KEY enteral feeding products in the UK, effective July 25, 2025 [1] - This transition aims to enhance product availability and provide a seamless experience for healthcare providers and patients [1][2] Relationship with Distributors - Vygon UK has been a distributor of MIC-KEY products for 29 years, supporting hospitals and patients across the UK [2] - Avanos' decision to manage sales directly is intended to strengthen relationships with healthcare professionals and ensure continuity of care [3] Product Information - MIC-KEY products deliver enteral nutrition through a low-profile feeding tube and have been trusted by clinicians and patients for over 25 years [3] - The products are sold in over 60 countries across six continents, highlighting their global reach and acceptance [3] Transition Support - Avanos is committed to ensuring a smooth transition and will provide ongoing communication and support to customers during this period [4] - Healthcare providers currently purchasing MIC-KEY products through Vygon will receive guidance on how to order from Avanos with minimal disruption [4]

合作伙伴征集：2025全球手术机器人大会 报名：首届全球眼科大会 | 暂定议程 报名：首届全球心血管大会 | 奖项报名倒计时 报名：首届全球骨科大会 | 奖项报名倒计时 近日， 西门子医疗宣布瓦里安美洲区总裁John Kowal将接替David Pacitti ，担任西门子医疗解决方案（美国）公 司总裁兼美洲区负责人。与此同时， David Pacitti正式转任Avanos Medical首席执行官（CEO） 。 # 高管变动详情 John Kowal将接替David Pacitti，担任西门子医疗解决方案（美国）公司总裁兼美洲区负责人，任命将于2025年4月14 日生效。 John Kowal于2005年加入瓦里安，从地区销售经理逐步晋升至美洲区总裁。 他在瓦里安任职期间，成功推动了客户 满意度和忠诚度的提升，制定了有效的业务战略，并带领团队实现了收入和订单预算的突破。此外，他还致力于推 动癌症治疗的普及，特别是在健康不平等地区。 在加入西门子医疗之前，Pacitti曾在 雅培血管公司 担任领导职务，包括担任美国商业运营、销售和市场营销的部门 副总裁。他负责监督雅培公司多个关键产品的推出，包括其首个药物洗 ...