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]
Avanos Medical(AVNS) - 2024 Q4 - Annual Results