Avanos Medical(AVNS)2025-05-06 20:17Financial 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]