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Avanos Medical(AVNS) - 2024 Q4 - Annual Results
AVNSAvanos Medical(AVNS)2025-02-26 12:07

Financial Performance - Fourth quarter net sales from continuing operations totaled 179.6million,a3.6179.6 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,comparedtodilutedearningspershareof8.63, compared to diluted earnings per share of 0.24 a year ago[5] - Adjusted EBITDA for the fourth quarter was 28.6million,comparedto28.6 million, compared to 32.1 million in the prior year[9] - Free cash flow for the fourth quarter was 53.1million,comparedtoanoutflowof53.1 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 665millionand665 million and 685 million, with adjusted diluted earnings per share expected to be between 1.05to1.05 to 1.25[18] - Operating loss in 2024 was 396.2million,comparedtooperatingprofitof396.2 million, compared to operating profit of 4.2 million in the prior year[13] - The company reported a net loss of 397.3millionforthethreemonthsendedDecember31,2024,comparedtoanetincomeof397.3 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 79.6million,adecreaseof21.479.6 million, a decrease of 21.4% from 101.1 million in 2023[40] - The company reported a total operating loss of 403.9millionfortheyearendedDecember31,2024,comparedtoatotallossof403.9 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 436.7millionduringthefourthquarterduetorevisedrevenueandmarginprojections[14]−Thecompanyincurredagoodwillandintangiblesimpairmentof436.7 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 436.7million,withnocorrespondingimpairmentreportedin2023[40]−Thecompanyincurredrestructuringandtransformationchargesof436.7 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 5.2millioninthesameperiodof2023[37]−Acquisitionandintegration−relatedchargesfortheyearendedDecember31,2024,were5.2 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 3.3millionin2023[40]SalesandRevenueBreakdown−Digestivehealthsegmentreportednetsalesof3.3 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 94.8millioninQ42023[58]−TotalPainManagementandRecoverysegmentsawadeclineinQ42024netsalesto94.8 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 78.5millioninQ42023[58]−TotalnetsalesforQ42024reached78.5 million in Q4 2023[58] - Total net sales for Q4 2024 reached 179.6 million, reflecting a 3.6% increase from 173.3millioninQ42023[58]−Year−to−date(YTD)totalnetsalesfor2024were173.3 million in Q4 2023[58] - Year-to-date (YTD) total net sales for 2024 were 687.8 million, a 2.2% increase from 673.3millionin2023[58]−ThepercentagechangeinnetsalesforQTDwasdrivenbyavolumeincreaseof6.2673.3 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 42.9millioninQ42023[58]−SurgicalpainandrecoverysegmentexperiencedadeclineinQ42024netsalesto42.9 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 35.6millioninQ42023[58]−Thetotalpainmanagementandrecoverysegment′sYTDsalesdecreasedto35.6 million in Q4 2023[58] - The total pain management and recovery segment's YTD sales decreased to 291.4 million, down 3.4% from 301.7millionin2023[58]CashFlowandDebt−AsofDecember31,2024,netdebtwas301.7 million in 2023[58] Cash Flow and Debt - As of December 31, 2024, net debt was 27.0 million, down from 80.3millionintheprioryear[5]−CashprovidedbyoperatingactivitiesfortheyearendedDecember31,2024,was80.3 million in the prior year[5] - Cash provided by operating activities for the year ended December 31, 2024, was 100.7 million, up from 32.4millionin2023[56]−Thecompanyhadcashandcashequivalentsof32.4 million in 2023[56] - The company had cash and cash equivalents of 107.7 million as of December 31, 2024, compared to 87.7millionin2023[54]−FreecashflowforthethreemonthsendedDecember31,2024,was87.7 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 3.4millioninthesameperiodof2023[50]MarginsandExpenses−Grossmarginfor2024was55.43.4 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 95.0millionin2023,reflectingagrossprofitmarginof54.695.0 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 1.8million,comparedto1.8 million, compared to 0.9 million in 2023[40]