Strong Free Cash Flow Generation in Excess of
$25 Million
ALPHARETTA, Ga., Nov. 1, 2023
/PRNewswire/ -- Avanos Medical, Inc. (NYSE: AVNS) today reported
third quarter 2023 financial results.
"We are pleased with our results for this quarter as we continue
to deliver above-market growth in our Digestive Health markets,"
said Joe Woody, Avanos's chief
executive officer. Woody continued, "We believe we are poised to
sustain the momentum in Digestive Health and we are also confident
that our strategy for the Pain Management and Recovery business
will lead to sustainable growth as we enter 2024."
Third Quarter 2023 Financial Highlights
- Total net sales from continuing operations were $171.3 million, a 0.6% decrease from the
comparable prior year period.
- Net loss from continuing operations for the quarter was
$8.8 million, compared to net income
from continuing operations of $11.0
million a year ago.
- Adjusted net income from continuing operations totaled
$14.0 million, compared to
$11.5 million a year ago.
- Diluted loss per share from continuing operations was
$0.19, compared to diluted earnings
per share of $0.23 a year ago.
- Adjusted diluted earnings per share from continuing operations
was $0.30, compared to $0.24 a year ago.
Operational and Business Highlights
On October 2, we completed the
sale of substantially all of the assets primarily related to or
used in our RH business (the "Divestiture"). The Divestiture
represents a key component of our ongoing transformation process
and is aimed at accelerating our effort to focus our portfolio in
markets where we believe we are well-positioned to succeed.
On July 24, we closed the
acquisition of Diros Technology, Inc. ("Diros"). Based in
Toronto, Canada, Diros is at the
forefront of radiofrequency ablation ("RFA") technology. The
addition of Diros' unique RF TridentTM technology is
expected to further enhance Avanos' Pain Management and Recovery
treatment options and complement our premium COOLIEF* Cooled
Radiofrequency product offering.
The Divestiture and the acquisition of Diros is part of our
three-year transformation initiative that we announced early this
year. This initiative is focused on four key priorities: optimizing
our commercial organization; transforming our product portfolio;
implementing cost management initiatives to enhance operating
profitability; and continuing to efficiently deploy capital while
maintaining a focused and disciplined approach to M&A (the
"Transformation Process"). We anticipate that by 2025, this plan
will ultimately result in savings of between $45 million and $55
million compared to 2022.
Third Quarter 2023 Operating Results From
Continuing Operations
For the three months ended September 30,
2023, net sales totaled $171.3
million, a decrease of 0.6% compared to the prior year
period, primarily from lower HA sales, partially offset by higher
volume in the Digestive Health portfolio and slightly favorable
pricing and foreign currency translation effects.
As a result of the Divestiture, the RH business's operating
results are reflected as discontinued operations for all periods
presented. Treating the RH business as discontinued operations
results in significant shared overhead costs previously allocated
to the RH business that are now included in continuing operations.
Included in continuing operations are costs previously allocated to
the RH business of $10.3 million
in the three months ended September 30,
2023 compared to $8.3 million in the three months ended
September 30, 2022.
Gross margin during the third quarter of 2023 was 55.8%,
compared to 58.2% in the prior year period. Adjusted gross margin
was 58.2% compared to 60.3% last year. Gross profit margin
decreased primarily due to product mix, partially offset by
slightly favorable currency exchange rates and manufacturing
efficiencies.
Selling and general expenses as a percentage of net sales was
45.9% for the third quarter of 2023, compared to 45.4% for the
third quarter of 2022 primarily due to non-recurring expenses
associated with our ongoing Transformation Process and the
Divestiture.
Operating profit was $1.2 million,
compared to $12.8 million in the
prior year period, primarily due to overall lower sales volume
along with an increase in expenses related to the Transformation
Process and the Divestiture. On an adjusted basis, operating profit
totaled $23.0 million, compared to
$20.7 million a year ago.
Adjusted EBITDA from continuing operations was $27.8 million in the three months ended
September 30, 2023, compared to
$25.2 million in the three months
ended September 30, 2022.
First Nine Months 2023 Operating Results From Continuing
Operations
For the nine months ended September 30,
2023, net sales totaled $500.0
million, a decrease of 0.5% compared to the prior year
period, primarily due to lower volume in the Pain Management and
Recovery portfolio (primarily lower HA sales), partially offset by
continued strong demand for Digestive Health products. Favorable
pricing was mostly offset by unfavorable foreign currency
translation effects.
Gross margin for the nine months ended September 30, 2023 was 56.9%, compared to 58.0%
in the prior year period. Adjusted gross margin was 59.2% compared
to 60.3% last year. Gross margin decreased primarily due to product
mix partially offset by manufacturing efficiencies.
Selling and general expenses as a percentage of net sales was
52.1% for the nine months ended September
30, 2023, compared to 49.3% for the prior year period,
primarily due to non-recurring expenses associated with our ongoing
Transformation Process and the Divestiture.
Operating loss for the nine months ended September 30, 2023 was $7.0 million, compared to operating income of
$18.9 million in the prior year
period, primarily due to overall lower sales volume along with an
increase in expenses related to the Transformation Process and the
Divestiture. On an adjusted basis, operating profit totaled
$52.6 million, compared to
$43.7 million a year ago.
Shared overhead costs previously allocated to the RH business
were $34.5 million in the nine
months ended September 30, 2023
compared to $33.3 million in the
prior year period.
Adjusted EBITDA from continuing operations for the nine months
ended September 30, 2023 was
$66.8 million, compared to
$57.0 million in the prior year
period.
Cash Flow and Balance Sheet
Cash from operations less capital expenditures, or free cash
flow, for the third quarter was $25.2
million, driven primarily by cash generated by operating
activities, compared to $23.1 million
a year ago. The Company's cash balance at September 30, 2023
was $107.1 million, compared to
$127.7 million at year-end 2022.
Total debt outstanding, net of unamortized discounts, was
$264.5 million at
September 30, 2023, compared to $232.5 million at December 31, 2022.
Today our total debt outstanding is $169
million and cash and equivalents on hand is $105 million.
Discontinued Operations
Net sales from discontinued operations were $31.1 million and $93.9
million in the three and nine months ended September 30, 2023, respectively, compared to
$29.8 million and $100.0 million in the three and nine months ended
September 30, 2022, respectively. We
expect a loss on the disposal of the RH business; accordingly, we
recorded an impairment of $72.3
million against assets in the disposal group, which is
included in "(Loss) income from discontinued operations, net of
tax."
2023 Outlook
For the year, the Company anticipates revenue between
$675 million and $685 million from continuing operations, adjusted
gross margins greater than 59% and adjusted diluted earnings per
share from continuing operations of between $1.05 and $1.15 for
the year.
Non-GAAP Financial Measures
This press release and the accompanying tables include the
following financial measures that have not been calculated in
accordance with accounting principles generally accepted in the
U.S., or GAAP, and are therefore referred to as non-GAAP financial
measures:
- Adjusted net income
- Adjusted diluted earnings per share
- Adjusted gross and operating profit
- Adjusted effective tax rate
- Adjusted EBITDA
- Free cash flow
These non-GAAP financial measures exclude the following items,
as applicable, for the relevant time periods as indicated in the
accompanying non-GAAP reconciliations to the comparable GAAP
financial measures:
- Certain acquisition and integration charges related to
acquisitions.
- Expenses associated with restructuring and transformation
activities, including the Divestiture.
- Expenses associated with European Union Medical Device
Regulation ("EU MDR") compliance.
- The amortization of intangible assets associated with prior
business acquisitions.
- The tax effects of certain adjusting items.
- The benefit associated with the tax effects of the CARES
Act.
- The positive or negative effect of changes in currency exchange
rates during the year.
The Company provides these non-GAAP financial measures as
supplemental information to its GAAP financial measures. Management
and the Company's board of directors use net sales on a constant
currency basis, adjusted net income, adjusted diluted earnings per
share, adjusted operating profit, adjusted EBITDA, and free cash
flow to: (a) evaluate the Company's historical and prospective
financial performance and its performance relative to its
competitors, (b) allocate resources and (c) measure the operational
performance of the Company's business units and their managers.
Management also believes that the use of an adjusted effective tax
rate provides improved insight into the tax effects of the
Company's ongoing business operations.
Additionally, the compensation committee of the Company's board
of directors will use certain of the non-GAAP financial measures
when setting and assessing achievement of incentive compensation
goals. These goals are based, in part, on the Company's net sales
on a constant currency basis and adjusted EBITDA, which will be
determined by excluding certain items that are used in calculating
these non-GAAP financial measures.
Our competitors may define these non-GAAP financial measures
differently, and as a result, our measure of these non-GAAP
financial measures may not be directly comparable to those of other
companies. Items excluded from these non-GAAP financial measures
are significant components in understanding and assessing financial
performance. These non-GAAP financial measures are supplemental
measures of operating performance that do not represent, and should
not be considered in isolation or as an alternative to, or
substitute for, the financial statement data presented in the
Company's consolidated financial statements as indicators of
financial performance. These non-GAAP financial measures have
limitations as analytical tools, and should not be considered in
isolation, or as a substitute for analysis of the Company's results
as reported under GAAP. We compensate for these limitations by
relying primarily on our GAAP results and using these non-GAAP
financial measures as supplemental information.
Reconciliations of these non-GAAP financial measures to the most
directly comparable GAAP financial measures are included in the
attached financial tables.
Conference Call Webcast
Avanos Medical, Inc. will host a conference call today at
9 a.m. ET. The conference call can be
accessed live over the internet at https://avanos.investorroom.com
or via telephone by dialing 877-240-5772 in the United States. A replay of the call will
be available at noon ET today by
calling 877-344-7529 in the United
States and entering passcode 9384291. A webcast of the
call will also be archived in the Investors section on the Avanos
website.
About Avanos Medical, Inc.
Avanos Medical (NYSE: AVNS) is a medical technology company
focused on delivering clinically superior solutions that will help
patients get back to the things that matter. Headquartered in
Alpharetta, Georgia, Avanos is
committed to addressing some of today's most important healthcare
needs, including providing a vital lifeline for nutrition to
patients from hospital to home, and reducing the use of opioids
while helping patients move from surgery to recovery. Avanos
develops, manufactures and markets its recognized brands globally
and holds leading market positions in multiple categories across
its portfolio. For more information, visit www.avanos.com and
follow Avanos Medical on Twitter (@AvanosMedical), LinkedIn and
Facebook.
Forward-Looking Statements
This press release contains information that includes or is
based on "forward-looking statements" within the meaning of the
Private Securities Litigation Reform Act of 1995. Forward-looking
statements are based on the current plans and expectations of
management and are subject to various risks and uncertainties that
could cause our actual results to differ materially from those
expressed or implied in such statements. Forward-looking statements
include all statements that do not relate solely to historical or
current facts, and can generally be identified by the use of words
such as "may," "believe," "will," "expect," "project," "estimate,"
"anticipate," "plan" or "continue" and similar expressions. Such
factors include, but are not limited to: weakening of economic
conditions that could adversely affect the level of demand for our
products; pricing pressures generally, including cost-containment
measures that could adversely affect the price of or demand for our
products; shortage in drugs used in our Surgical Pain and Recovery
products or other disruptions in our supply chain; the ongoing
regional conflicts between Russia
and Ukraine and in the
Middle East; our ability to
successfully execute on or achieve the expected benefits of the
Transformation Process or our divestiture, acquisition or merger
transactions; inflationary pressures; the effects of the recent
financial conditions affecting the banking system and the potential
threats to the solvency of commercial banks; changes in foreign
exchange markets; legislative and regulatory actions; unanticipated
issues arising in connection with clinical studies and otherwise
that affect U.S. Food and Drug Administration approval of new
products; changes in reimbursement levels from third-party payors;
a significant increase in product liability claims; the impact of
investigative and legal proceedings and compliance risks; the
impact of the federal legislation to reform the United States healthcare system; changes
in financial markets; and changes in the competitive environment.
The information contained herein speaks only as of the date of this
release and we undertake no obligation to update forward-looking
statements, except as may be required by the securities laws.
Additional information concerning these and other factors that
may impact future results is contained in our filings with the U.S.
Securities and Exchange Commission, including our most recent Form
10-Q.
|
AVANOS MEDICAL,
INC.
CONDENSED
CONSOLIDATED INCOME STATEMENTS
(unaudited)
(in millions, except
per share amounts)
|
|
|
Three Months Ended
September 30,
|
|
Nine Months Ended
September 30,
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
|
Net
Sales
|
$
171.3
|
|
$
172.3
|
|
$
500.0
|
|
$
502.5
|
|
Cost of products
sold
|
75.8
|
|
72.1
|
|
215.3
|
|
211.2
|
|
Gross
Profit
|
95.5
|
|
100.2
|
|
284.7
|
|
291.3
|
|
Research and
development expenses
|
6.1
|
|
7.1
|
|
20.4
|
|
22.0
|
|
Selling and general
expenses
|
78.7
|
|
78.3
|
|
260.5
|
|
247.8
|
|
Other expense,
net
|
9.5
|
|
2.0
|
|
10.8
|
|
2.6
|
|
Operating Income
(Loss)
|
1.2
|
|
12.8
|
|
(7.0)
|
|
18.9
|
|
Interest
income
|
0.9
|
|
0.3
|
|
1.9
|
|
0.5
|
|
Interest
expense
|
(4.7)
|
|
(3.0)
|
|
(11.7)
|
|
(7.0)
|
|
(Loss) Income Before
Income Taxes
|
(2.6)
|
|
10.1
|
|
(16.8)
|
|
12.4
|
|
Income tax (provision)
benefit
|
(6.2)
|
|
0.9
|
|
(4.1)
|
|
(0.6)
|
|
(Loss) Income from
Continuing Operations
|
(8.8)
|
|
11.0
|
|
(20.9)
|
|
11.8
|
|
Income (Loss) from
discontinued operations, net of tax
|
5.1
|
|
4.7
|
|
(51.4)
|
|
21.8
|
|
Net (Loss)
Income
|
$
(3.7)
|
|
$
15.7
|
|
$
(72.3)
|
|
$
33.6
|
|
|
|
|
|
|
|
|
|
Interest expense,
net
|
$
3.8
|
|
$
2.7
|
|
$
9.8
|
|
$
6.5
|
|
Income tax
benefit
|
7.8
|
|
0.3
|
|
6.3
|
|
7.7
|
|
Depreciation and
amortization
|
11.0
|
|
11.6
|
|
34.6
|
|
34.3
|
|
EBITDA
|
$
18.9
|
|
$
30.3
|
|
$
(21.6)
|
|
$
82.1
|
|
|
|
|
|
|
|
|
|
(Loss) Earnings Per
Share
|
|
|
|
|
|
|
|
|
Basic
|
|
|
|
|
|
|
|
|
Continuing
operations
|
$
(0.19)
|
|
$
0.24
|
|
$
(0.45)
|
|
$
0.25
|
|
Discontinued
operations
|
0.11
|
|
0.10
|
|
(1.10)
|
|
0.46
|
|
Basic (Loss) Earnings
Per Share
|
$
(0.08)
|
|
$
0.34
|
|
$
(1.55)
|
|
$
0.71
|
|
|
|
|
|
|
|
|
|
Diluted
|
|
|
|
|
|
|
|
|
Continuing
operations
|
$
(0.19)
|
|
$
0.23
|
|
$
(0.45)
|
|
$
0.25
|
|
Discontinued
operations
|
$
0.11
|
|
0.10
|
|
(1.10)
|
|
0.46
|
|
Diluted (Loss)
Earnings Per Share
|
$
(0.08)
|
|
$
0.33
|
|
$
(1.55)
|
|
$
0.71
|
|
|
|
|
|
|
|
|
|
Common Shares
Outstanding
|
|
|
|
|
|
|
|
|
Basic
|
46.8
|
|
46.6
|
|
46.7
|
|
47.1
|
|
Diluted
|
46.8
|
|
47.0
|
|
46.7
|
|
47.5
|
|
AVANOS MEDICAL,
INC.
Discontinued
Operations Summary
(unaudited)
(in millions, except
per share amounts)
|
|
|
Three Months Ended
September 30,
|
|
Nine Months Ended
September 30,
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
|
Net Sales
|
$
31.1
|
|
$
29.8
|
|
$
93.9
|
|
$
100.0
|
|
Cost of products
sold
|
19.9
|
|
19.9
|
|
57.8
|
|
58.2
|
|
Gross
Profit
|
11.2
|
|
9.9
|
|
36.1
|
|
41.8
|
|
Research and
development expenses
|
0.2
|
|
0.2
|
|
0.8
|
|
1.1
|
|
Selling, general and
other expenses
|
4.2
|
|
3.8
|
|
11.9
|
|
11.5
|
|
Other expense,
net
|
0.1
|
|
—
|
|
0.3
|
|
0.3
|
|
Operating
Income
|
6.7
|
|
5.9
|
|
23.1
|
|
28.9
|
|
Pretax loss on
classification as discontinued operations
|
—
|
|
—
|
|
(72.3)
|
|
—
|
|
Income (Loss) from
discontinued operations before income taxes
|
6.7
|
|
5.9
|
|
(49.2)
|
|
28.9
|
|
Income tax provision
from discontinued operations
|
(1.6)
|
|
(1.2)
|
|
(2.2)
|
|
(7.1)
|
|
Income (Loss) from
discontinued operations, net of tax
|
$
5.1
|
|
$
4.7
|
|
$
(51.4)
|
|
$
21.8
|
|
|
|
|
|
|
|
|
|
Earnings (Loss) Per
Share
|
|
|
|
|
|
|
|
|
Basic
|
$
0.11
|
|
$
0.10
|
|
$
(1.10)
|
|
$
0.46
|
|
Diluted
|
$
0.11
|
|
$
0.10
|
|
$
(1.10)
|
|
$
0.46
|
|
AVANOS MEDICAL,
INC.
NON-GAAP
RECONCILIATIONS
(unaudited)
(in
millions)
|
|
|
Gross
Profit
|
|
Three Months Ended
September 30, 2023
|
|
Three Months Ended
September 30, 2022
|
|
Continuing
Operations
|
|
Discontinued
Operations
|
|
Total
|
|
Continuing
Operations
|
|
Discontinued
Operations
|
|
Total
|
|
As reported
|
$ 95.5
|
|
$ 11.2
|
|
$
106.7
|
|
$
100.2
|
|
$
9.9
|
|
$
110.1
|
|
Restructuring and
transformation charges
|
0.6
|
|
—
|
|
0.6
|
|
—
|
|
—
|
|
—
|
|
EU MDR
Compliance
|
—
|
|
—
|
|
—
|
|
0.2
|
|
—
|
|
0.2
|
|
Intangibles
amortization
|
3.6
|
|
—
|
|
3.6
|
|
3.5
|
|
—
|
|
3.5
|
|
As adjusted
non-GAAP
|
$ 99.7
|
|
$ 11.2
|
|
$
110.9
|
|
$
103.9
|
|
$
9.9
|
|
$
113.8
|
|
Gross profit margin, as
reported
|
55.8 %
|
|
36.0 %
|
|
52.7 %
|
|
58.2 %
|
|
33.2 %
|
|
54.5 %
|
|
Gross profit margin, as
adjusted
|
58.2 %
|
|
36.0 %
|
|
54.8 %
|
|
60.3 %
|
|
33.2 %
|
|
56.3 %
|
|
Gross
Profit
|
|
Nine Months Ended
September 30, 2023
|
|
Nine Months Ended
September 30, 2022
|
|
Continuing
Operations
|
|
Discontinued
Operations
|
|
Total
|
|
Continuing
Operations
|
|
Discontinued
Operations
|
|
Total
|
|
As reported
|
$
284.7
|
|
$ 36.1
|
|
$
320.8
|
|
$
291.3
|
|
$ 41.8
|
|
$
333.1
|
|
Acquisition and
integration-related charges
|
—
|
|
—
|
|
—
|
|
1.4
|
|
—
|
|
1.4
|
|
Restructuring and
transformation charges
|
0.6
|
|
—
|
|
0.6
|
|
—
|
|
—
|
|
—
|
|
EU MDR
Compliance
|
—
|
|
—
|
|
—
|
|
0.2
|
|
—
|
|
0.2
|
|
Intangibles
amortization
|
10.8
|
|
—
|
|
10.8
|
|
10.1
|
|
—
|
|
10.1
|
|
As adjusted
non-GAAP
|
$
296.1
|
|
$ 36.1
|
|
$
332.2
|
|
$
303.0
|
|
$ 41.8
|
|
$
344.8
|
|
Gross profit margin, as
reported
|
56.9 %
|
|
38.4 %
|
|
54.0 %
|
|
58.0 %
|
|
41.8 %
|
|
55.3 %
|
|
Gross profit margin, as
adjusted
|
59.2 %
|
|
38.4 %
|
|
55.9 %
|
|
60.3 %
|
|
41.8 %
|
|
57.2 %
|
|
AVANOS MEDICAL,
INC.
NON-GAAP
RECONCILIATIONS
(unaudited)
(in
millions)
|
|
|
Operating
Profit
|
|
Three Months Ended
September 30, 2023
|
|
Three Months Ended
September 30, 2022
|
|
Continuing
Operations
|
|
Discontinued
Operations
|
|
Total
|
|
Continuing
Operations
|
|
Discontinued
Operations
|
|
Total
|
|
As reported
|
$
1.2
|
|
$
6.7
|
|
$
7.9
|
|
$
12.8
|
|
$
5.9
|
|
$
18.7
|
|
Acquisition and
integration-related charges
|
0.6
|
|
—
|
|
0.6
|
|
0.2
|
|
—
|
|
0.2
|
|
Restructuring and
transformation charges(a)
|
4.3
|
|
—
|
|
4.3
|
|
—
|
|
—
|
|
—
|
|
Divestiture related
charges
|
1.4
|
|
0.8
|
|
2.2
|
|
—
|
|
—
|
|
—
|
|
EU MDR
Compliance(b)
|
0.8
|
|
—
|
|
0.8
|
|
2.2
|
|
—
|
|
2.2
|
|
Litigation and
legal
|
8.5
|
|
—
|
|
8.5
|
|
—
|
|
—
|
|
—
|
|
Intangibles
amortization
|
6.2
|
|
—
|
|
6.2
|
|
5.5
|
|
0.6
|
|
6.1
|
|
As adjusted
non-GAAP
|
$
23.0
|
|
$
7.5
|
|
$
30.5
|
|
$
20.7
|
|
$
6.5
|
|
$
27.2
|
|
Operating (Loss)
Profit
|
|
Nine Months Ended
September 30, 2023
|
|
Nine Months Ended
September 30, 2022
|
|
Continuing
Operations
|
|
Discontinued
Operations
|
|
Total
|
|
Continuing
Operations
|
|
Discontinued
Operations
|
|
Total
|
|
As reported
|
$
(7.0)
|
|
$
23.1
|
|
$
16.1
|
|
$
18.9
|
|
$
28.9
|
|
$
47.8
|
|
Acquisition and
integration-related charges
|
2.4
|
|
—
|
|
2.4
|
|
3.0
|
|
—
|
|
3.0
|
|
Restructuring and
transformation charges(a)
|
23.0
|
|
—
|
|
23.0
|
|
—
|
|
—
|
|
—
|
|
Divestiture related
charges
|
5.1
|
|
0.8
|
|
5.9
|
|
—
|
|
—
|
|
—
|
|
EU MDR
Compliance(b)
|
2.8
|
|
—
|
|
2.8
|
|
5.4
|
|
—
|
|
5.4
|
|
Litigation and
legal
|
8.5
|
|
—
|
|
8.5
|
|
—
|
|
—
|
|
—
|
|
Intangibles
amortization
|
17.8
|
|
0.8
|
|
18.6
|
|
16.4
|
|
1.6
|
|
18.0
|
|
As adjusted
non-GAAP
|
$
52.6
|
|
$
24.7
|
|
$
77.3
|
|
$
43.7
|
|
$
30.5
|
|
$
74.2
|
|
|
|
|
|
|
|
|
|
|
(a)
|
Expenses incurred for
the Transformation Process are included in "Costs of products
sold," "Research and development," "Selling and general expenses"
and "Other expense, net" on the Condensed Consolidated Income
Statements.
|
|
(b)
|
In the three and nine
months ended September 30, 2023, EU MDR Compliance related charges
are included in "Selling and general expenses" on the Condensed
Consolidated Income Statements. In the three and nine months ended
September 30, 2022, EU MDR Compliance related charges are included
in "Costs of products sold" and "Selling and general expenses" on
the Condensed Consolidated Income Statements.
|
|
AVANOS MEDICAL,
INC.
NON-GAAP
RECONCILIATIONS
(unaudited)
(in
millions)
|
|
|
(Loss) Income Before
Taxes
|
|
Three Months Ended
September 30, 2023
|
|
Three Months Ended
September 30, 2022
|
|
Continuing
Operations
|
|
Discontinued
Operations
|
|
Total
|
|
Continuing
Operations
|
|
Discontinued
Operations
|
|
Total
|
|
As reported
|
$
(2.6)
|
|
$
6.7
|
|
$
4.1
|
|
$
10.1
|
|
$
5.9
|
|
$
16.0
|
|
Acquisition and
integration-related charges
|
0.6
|
|
—
|
|
0.6
|
|
0.2
|
|
—
|
|
0.2
|
|
Restructuring and
transformation charges
|
4.3
|
|
—
|
|
4.3
|
|
—
|
|
—
|
|
—
|
|
Divestiture related
charges
|
1.4
|
|
0.8
|
|
2.2
|
|
—
|
|
—
|
|
—
|
|
EU MDR
Compliance
|
0.8
|
|
—
|
|
0.8
|
|
2.2
|
|
—
|
|
2.2
|
|
Litigation and
legal
|
8.5
|
|
—
|
|
8.5
|
|
—
|
|
—
|
|
—
|
|
Intangibles
amortization
|
6.2
|
|
—
|
|
6.2
|
|
5.5
|
|
0.6
|
|
6.1
|
|
As adjusted
non-GAAP
|
$
19.2
|
|
$
7.5
|
|
$
26.7
|
|
$
18.0
|
|
$
6.5
|
|
$
24.5
|
|
(Loss) Income Before
Taxes
|
|
Nine Months Ended
September 30, 2023
|
|
Nine Months Ended
September 30, 2022
|
|
Continuing
Operations
|
|
Discontinued
Operations
|
|
Total
|
|
Continuing
Operations
|
|
Discontinued
Operations
|
|
Total
|
|
As reported
|
$
(16.8)
|
|
$
(49.2)
|
|
$
(66.0)
|
|
$
12.4
|
|
$
28.9
|
|
$
41.3
|
|
Acquisition and
integration-related charges
|
2.4
|
|
—
|
|
2.4
|
|
3.0
|
|
—
|
|
3.0
|
|
Restructuring and
transformation charges
|
23.0
|
|
—
|
|
23.0
|
|
—
|
|
—
|
|
—
|
|
Divestiture related
charges
|
5.1
|
|
0.8
|
|
5.9
|
|
—
|
|
—
|
|
—
|
|
Estimated loss on
Divestiture
|
—
|
|
72.3
|
|
72.3
|
|
—
|
|
—
|
|
—
|
|
EU MDR
Compliance
|
2.8
|
|
—
|
|
2.8
|
|
5.4
|
|
—
|
|
5.4
|
|
Litigation and
legal
|
8.5
|
|
—
|
|
8.5
|
|
—
|
|
—
|
|
—
|
|
Intangibles
amortization
|
17.8
|
|
0.8
|
|
18.6
|
|
16.4
|
|
1.6
|
|
18.0
|
|
Loss on extinguishment
of debt
|
—
|
|
—
|
|
—
|
|
1.1
|
|
—
|
|
1.1
|
|
As adjusted
non-GAAP
|
$
42.8
|
|
$
24.7
|
|
$
67.5
|
|
$
38.3
|
|
$
30.5
|
|
$
68.8
|
|
AVANOS MEDICAL,
INC.
NON-GAAP
RECONCILIATIONS
(unaudited)
(in
millions)
|
|
|
Tax (Provision)
Benefit
|
|
Three Months Ended
September 30, 2023
|
|
Three Months Ended
September 30, 2022
|
|
Continuing
Operations
|
|
Discontinued
Operations
|
|
Total
|
|
Continuing
Operations
|
|
Discontinued
Operations
|
|
Total
|
|
As reported
|
$ (6.2)
|
|
$ (1.6)
|
|
$ (7.8)
|
|
$
0.9
|
|
$ (1.2)
|
|
$ (0.3)
|
|
Tax effects of
adjusting items
|
1.0
|
|
(0.4)
|
|
0.6
|
|
(3.6)
|
|
1.1
|
|
(2.5)
|
|
Effects of the CARES
Act and other(a)
|
—
|
|
—
|
|
—
|
|
(3.8)
|
|
—
|
|
(3.8)
|
|
As adjusted
non-GAAP
|
$ (5.2)
|
|
$ (2.0)
|
|
$ (7.2)
|
|
$ (6.5)
|
|
$ (0.1)
|
|
$ (6.6)
|
|
Effective tax rate, as
reported
|
238.5 %
|
|
23.9 %
|
|
190.2 %
|
|
8.9 %
|
|
20.3 %
|
|
1.9 %
|
|
Effective tax rate, as
adjusted
|
27.0 %
|
|
26.7 %
|
|
26.9 %
|
|
36.1 %
|
|
1.5 %
|
|
26.9 %
|
|
Tax
(Provision)
|
|
Nine Months Ended
September 30, 2023
|
|
Nine Months Ended
September 30, 2022
|
|
Continuing
Operations
|
|
Discontinued
Operations
|
|
Total
|
|
Continuing
Operations
|
|
Discontinued
Operations
|
|
Total
|
|
As reported
|
$ (4.1)
|
|
$ (2.2)
|
|
$ (6.3)
|
|
$ (0.6)
|
|
$ (7.1)
|
|
$ (7.7)
|
|
Tax effects of
adjusting items
|
(7.5)
|
|
(4.4)
|
|
(11.9)
|
|
(7.6)
|
|
0.5
|
|
(7.1)
|
|
Effects of the CARES
Act and other(a)
|
—
|
|
—
|
|
—
|
|
(3.8)
|
|
—
|
|
(3.8)
|
|
As adjusted
non-GAAP
|
$
(11.6)
|
|
$ (6.6)
|
|
$
(18.2)
|
|
$
(12.0)
|
|
$ (6.6)
|
|
$
(18.6)
|
|
Effective tax rate, as
reported
|
24.4 %
|
|
4.5 %
|
|
9.5 %
|
|
4.8 %
|
|
24.6 %
|
|
18.6 %
|
|
Effective tax rate, as
adjusted
|
27.0 %
|
|
26.7 %
|
|
26.9 %
|
|
31.3 %
|
|
21.7 %
|
|
27.1 %
|
|
AVANOS MEDICAL,
INC.
NON-GAAP
RECONCILIATIONS
(unaudited)
(in millions except
per share amounts)
|
|
|
Net (Loss)
Income
|
|
Three Months Ended
September 30, 2023
|
|
Three Months Ended
September 30, 2022
|
|
Continuing
Operations
|
|
Discontinued
Operations
|
|
Total
|
|
Continuing
Operations
|
|
Discontinued
Operations
|
|
Total
|
|
As reported
|
$
(8.8)
|
|
$
5.1
|
|
$
(3.7)
|
|
$
11.0
|
|
$
4.7
|
|
$
15.7
|
|
Acquisition and
integration-related charges
|
0.6
|
|
—
|
|
0.6
|
|
0.2
|
|
—
|
|
0.2
|
|
Restructuring and
transformation charges
|
4.3
|
|
—
|
|
4.3
|
|
—
|
|
—
|
|
—
|
|
Divestiture related
charges
|
1.4
|
|
0.8
|
|
2.2
|
|
—
|
|
—
|
|
—
|
|
EU MDR
Compliance
|
0.8
|
|
—
|
|
0.8
|
|
2.2
|
|
—
|
|
2.2
|
|
Litigation and
legal
|
8.5
|
|
—
|
|
8.5
|
|
—
|
|
—
|
|
—
|
|
Intangibles
amortization
|
6.2
|
|
—
|
|
6.2
|
|
5.5
|
|
0.6
|
|
6.1
|
|
Tax effects of
adjusting items
|
1.0
|
|
(0.4)
|
|
0.6
|
|
(3.6)
|
|
1.1
|
|
(2.5)
|
|
Tax effects of the
CARES Act and other
|
—
|
|
—
|
|
—
|
|
(3.8)
|
|
—
|
|
(3.8)
|
|
As adjusted
non-GAAP
|
$
14.0
|
|
$
5.5
|
|
$
19.5
|
|
$
11.5
|
|
$
6.4
|
|
$
17.9
|
|
Diluted (loss) earnings
per share, as reported
|
$
(0.19)
|
|
$
0.11
|
|
$
(0.08)
|
|
$
0.23
|
|
$
0.10
|
|
$
0.33
|
|
Diluted earnings per
share, as adjusted
|
$
0.30
|
|
$
0.12
|
|
$
0.42
|
|
$
0.24
|
|
$
0.14
|
|
$
0.38
|
|
Net (Loss)
Income
|
|
Nine Months Ended
September 30, 2023
|
|
Nine Months Ended
September 30, 2022
|
|
Continuing
Operations
|
|
Discontinued
Operations
|
|
Total
|
|
Continuing
Operations
|
|
Discontinued
Operations
|
|
Total
|
|
As reported
|
$
(20.9)
|
|
$
(51.4)
|
|
$
(72.3)
|
|
$
11.8
|
|
$
21.8
|
|
$
33.6
|
|
Acquisition and
integration-related charges
|
2.4
|
|
—
|
|
2.4
|
|
3.0
|
|
—
|
|
3.0
|
|
Restructuring and
transformation charges
|
23.0
|
|
—
|
|
23.0
|
|
—
|
|
—
|
|
—
|
|
Divestiture related
charges
|
5.1
|
|
0.8
|
|
5.9
|
|
—
|
|
—
|
|
—
|
|
Estimated loss on
divestiture
|
—
|
|
72.3
|
|
72.3
|
|
—
|
|
—
|
|
—
|
|
EU MDR
Compliance
|
2.8
|
|
—
|
|
2.8
|
|
5.4
|
|
—
|
|
5.4
|
|
Litigation and
legal
|
8.5
|
|
—
|
|
8.5
|
|
—
|
|
—
|
|
—
|
|
Intangibles
amortization
|
17.8
|
|
0.8
|
|
18.6
|
|
16.4
|
|
1.6
|
|
18.0
|
|
Loss on extinguishment
of debt
|
—
|
|
—
|
|
—
|
|
1.1
|
|
—
|
|
1.1
|
|
Tax effects of
adjusting items
|
(7.5)
|
|
(4.4)
|
|
(11.9)
|
|
(7.6)
|
|
0.5
|
|
(7.1)
|
|
Tax effects of the
CARES Act and other
|
—
|
|
—
|
|
—
|
|
(3.8)
|
|
—
|
|
(3.8)
|
|
As adjusted
non-GAAP
|
$
31.2
|
|
$
18.1
|
|
$
49.3
|
|
$
26.3
|
|
$
23.9
|
|
$
50.2
|
|
Diluted (loss) earnings
per share, as reported
|
$
(0.45)
|
|
$
(1.10)
|
|
$
(1.55)
|
|
$
0.25
|
|
$
0.46
|
|
$
0.71
|
|
Diluted earnings per
share, as adjusted
|
$
0.67
|
|
$
0.39
|
|
$
1.06
|
|
$
0.55
|
|
$
0.50
|
|
$
1.05
|
|
AVANOS MEDICAL,
INC.
NON-GAAP
RECONCILIATIONS
(unaudited)
(in millions except
per share amounts)
|
|
|
Selling, General and
Administrative Expenses
|
|
Three Months Ended
September 30, 2023
|
|
Three Months Ended
September 30, 2022
|
|
Continuing
Operations
|
|
Discontinued
Operations
|
|
Total
|
|
Continuing
Operations
|
|
Discontinued
Operations
|
|
Total
|
|
As reported
|
$ 78.7
|
|
$
4.2
|
|
$ 82.9
|
|
$ 78.3
|
|
$
3.8
|
|
$ 82.1
|
|
Acquisition and
integration-related charges
|
(0.6)
|
|
—
|
|
(0.6)
|
|
(0.2)
|
|
—
|
|
(0.2)
|
|
Restructuring and
transformation charges(a)
|
(2.1)
|
|
—
|
|
(2.1)
|
|
—
|
|
—
|
|
—
|
|
Divestiture related
charges
|
(1.4)
|
|
(0.8)
|
|
(2.2)
|
|
—
|
|
—
|
|
—
|
|
EU MDR Compliance
(b)
|
(0.8)
|
|
—
|
|
(0.8)
|
|
(1.9)
|
|
—
|
|
(1.9)
|
|
Intangibles
amortization
|
(2.6)
|
|
—
|
|
(2.6)
|
|
(2.1)
|
|
(0.6)
|
|
(2.7)
|
|
As adjusted
non-GAAP
|
$ 71.2
|
|
$
3.4
|
|
$ 74.6
|
|
$ 74.1
|
|
$
3.2
|
|
$ 77.3
|
|
SG&A as a
percentage of revenue, as reported
|
45.9 %
|
|
13.5 %
|
|
41.0 %
|
|
45.4 %
|
|
12.8 %
|
|
40.6 %
|
|
SG&A as a
percentage of revenue, as adjusted
|
41.6 %
|
|
10.9 %
|
|
36.9 %
|
|
43.0 %
|
|
10.7 %
|
|
38.2 %
|
|
Selling, General and
Administrative Expenses
|
|
Nine Months Ended
September 30, 2023
|
|
Nine Months Ended
September 30, 2022
|
|
Continuing
Operations
|
|
Discontinued
Operations
|
|
Total
|
|
Continuing
Operations
|
|
Discontinued
Operations
|
|
Total
|
|
As reported
|
$
260.5
|
|
$ 11.9
|
|
$
272.4
|
|
$
247.8
|
|
$ 11.5
|
|
$
259.3
|
|
Acquisition and
integration-related charges
|
(1.0)
|
|
—
|
|
(1.0)
|
|
(1.6)
|
|
—
|
|
(1.6)
|
|
Restructuring and
transformation charges(a)
|
(20.5)
|
|
—
|
|
(20.5)
|
|
—
|
|
—
|
|
—
|
|
Divestiture related
charges
|
(5.1)
|
|
(0.8)
|
|
(5.9)
|
|
—
|
|
—
|
|
—
|
|
EU MDR Compliance
(b)
|
(2.8)
|
|
—
|
|
(2.8)
|
|
(5.2)
|
|
—
|
|
(5.2)
|
|
Intangibles
amortization
|
(7.0)
|
|
(0.8)
|
|
(7.8)
|
|
(6.4)
|
|
(1.5)
|
|
(7.9)
|
|
As adjusted
non-GAAP
|
$
224.1
|
|
$ 10.3
|
|
$
234.4
|
|
$
234.6
|
|
$ 10.0
|
|
$
244.6
|
|
SG&A as a
percentage of revenue, as reported
|
52.1 %
|
|
12.7 %
|
|
45.9 %
|
|
49.3 %
|
|
11.5 %
|
|
43.0 %
|
|
SG&A as a
percentage of revenue, as adjusted
|
44.8 %
|
|
11.0 %
|
|
39.5 %
|
|
46.7 %
|
|
10.0 %
|
|
40.6 %
|
|
AVANOS MEDICAL,
INC.
NON-GAAP
RECONCILIATIONS
(unaudited)
(in
millions)
|
|
|
EBITDA
|
|
Three Months Ended
September 30, 2023
|
|
Three Months Ended
September 30, 2022
|
|
Continuing
Operations
|
|
Discontinued
Operations
|
|
Total
|
|
Continuing
Operations
|
|
Discontinued
Operations
|
|
Total
|
|
Net (loss)
income
|
$
(8.8)
|
|
$
5.1
|
|
$
(3.7)
|
|
$
11.0
|
|
$
4.7
|
|
$
15.7
|
|
Interest expense,
net
|
3.8
|
|
—
|
|
3.8
|
|
2.7
|
|
—
|
|
2.7
|
|
Income tax benefit
(provision)
|
6.2
|
|
1.6
|
|
7.8
|
|
(0.9)
|
|
1.2
|
|
0.3
|
|
Depreciation
|
4.8
|
|
—
|
|
4.8
|
|
4.5
|
|
1.0
|
|
5.5
|
|
Amortization
|
6.2
|
|
—
|
|
6.2
|
|
5.5
|
|
0.6
|
|
6.1
|
|
EBITDA
|
12.2
|
|
6.7
|
|
18.9
|
|
22.8
|
|
7.5
|
|
30.3
|
|
Acquisition and
integration-related charges
|
0.6
|
|
—
|
|
0.6
|
|
0.2
|
|
—
|
|
0.2
|
|
Restructuring and
transformation charges
|
4.3
|
|
—
|
|
4.3
|
|
—
|
|
—
|
|
—
|
|
Divestiture related
charges
|
1.4
|
|
0.8
|
|
2.2
|
|
—
|
|
—
|
|
—
|
|
EU MDR
Compliance
|
0.8
|
|
—
|
|
0.8
|
|
2.2
|
|
—
|
|
2.2
|
|
Litigation and
legal
|
8.5
|
|
—
|
|
8.5
|
|
—
|
|
—
|
|
—
|
|
Adjusted
EBITDA
|
$
27.8
|
|
$
7.5
|
|
$
35.3
|
|
$
25.2
|
|
$
7.5
|
|
$
32.7
|
|
EBITDA
|
|
Nine Months Ended
September 30, 2023
|
|
Nine Months Ended
September 30, 2022
|
|
Continuing
Operations
|
|
Discontinued
Operations
|
|
Total
|
|
Continuing
Operations
|
|
Discontinued
Operations
|
|
Total
|
|
Net (loss)
income
|
$
(20.9)
|
|
$
(51.4)
|
|
$
(72.3)
|
|
$
11.8
|
|
$
21.8
|
|
$
33.6
|
|
Interest expense,
net
|
9.8
|
|
—
|
|
9.8
|
|
6.5
|
|
—
|
|
6.5
|
|
Income tax benefit
(provision)
|
4.1
|
|
2.2
|
|
6.3
|
|
0.6
|
|
7.1
|
|
7.7
|
|
Depreciation
|
14.2
|
|
1.8
|
|
16.0
|
|
13.3
|
|
3.0
|
|
16.3
|
|
Amortization
|
17.8
|
|
0.8
|
|
18.6
|
|
16.4
|
|
1.6
|
|
18.0
|
|
EBITDA
|
25.0
|
|
(46.6)
|
|
(21.6)
|
|
48.6
|
|
33.5
|
|
82.1
|
|
Acquisition and
integration-related charges
|
2.4
|
|
—
|
|
2.4
|
|
3.0
|
|
—
|
|
3.0
|
|
Restructuring and
transformation charges
|
23.0
|
|
—
|
|
23.0
|
|
—
|
|
—
|
|
—
|
|
Divestiture related
charges
|
5.1
|
|
0.8
|
|
5.9
|
|
—
|
|
—
|
|
—
|
|
Estimated loss on
divestiture
|
—
|
|
72.3
|
|
72.3
|
|
—
|
|
—
|
|
—
|
|
EU MDR
Compliance
|
2.8
|
|
—
|
|
2.8
|
|
5.4
|
|
—
|
|
5.4
|
|
Litigation and
legal
|
8.5
|
|
—
|
|
8.5
|
|
—
|
|
—
|
|
—
|
|
Adjusted
EBITDA
|
$
66.8
|
|
$
26.5
|
|
$
93.3
|
|
$
57.0
|
|
$
33.5
|
|
$
90.5
|
|
AVANOS MEDICAL,
INC.
NON-GAAP
RECONCILIATIONS
(unaudited)
(in millions except
per share amounts)
|
|
|
Free Cash
Flow
|
|
Three Months Ended
September 30,
|
|
Nine Months Ended
September 30, 2023
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
|
Cash provided by
operating activities
|
$
29.1
|
|
$
28.4
|
|
$
19.7
|
|
$
57.2
|
|
Capital
expenditures
|
(3.9)
|
|
(5.3)
|
|
(11.9)
|
|
(14.4)
|
|
Free Cash
Flow
|
$
25.2
|
|
$
23.1
|
|
$
7.8
|
|
$
42.8
|
|
2023
OUTLOOK
|
|
|
Estimated
Range
|
|
Diluted (loss) earnings
per share (GAAP)
|
$
(0.22)
|
to
|
$
0.08
|
|
Intangibles
amortization
|
0.38
|
to
|
0.34
|
|
Restructuring and
transformation charges
|
0.51
|
to
|
0.42
|
|
EU MDR
compliance
|
0.06
|
to
|
0.05
|
|
Divestiture related
charges
|
0.11
|
to
|
0.09
|
|
Other
|
0.21
|
to
|
0.17
|
|
Adjusted diluted
earnings per share (non-GAAP)
|
$
1.05
|
to
|
$
1.15
|
|
AVANOS MEDICAL,
INC.
CONDENSED
CONSOLIDATED BALANCE SHEETS
(unaudited)
(in
millions)
|
|
|
September
30,
2023
|
|
December 31,
2022
|
|
ASSETS
|
|
|
|
|
Current
Assets
|
|
|
|
|
Cash and cash
equivalents
|
$
107.1
|
|
$
127.7
|
|
Accounts receivable,
net
|
145.2
|
|
167.9
|
|
Inventories
|
156.6
|
|
132.3
|
|
Prepaid and other
current assets
|
13.6
|
|
13.9
|
|
Assets held for
sale
|
102.1
|
|
58.0
|
|
Total Current
Assets
|
524.6
|
|
499.8
|
|
Property, Plant and
Equipment, net
|
116.8
|
|
118.6
|
|
Operating Lease
Right-of-Use Assets
|
27.1
|
|
27.5
|
|
Goodwill
|
791.5
|
|
760.3
|
|
Other Intangible
Assets, net
|
242.2
|
|
234.2
|
|
Deferred Tax
Assets
|
4.3
|
|
4.6
|
|
Other
Assets
|
18.4
|
|
17.6
|
|
Assets Held for
Sale
|
—
|
|
124.3
|
|
TOTAL
ASSETS
|
$
1,724.9
|
|
$
1,786.9
|
|
|
|
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
|
Current
Liabilities
|
|
|
|
|
Current portion of
long-term debt
|
$
6.2
|
|
$
6.2
|
|
Current portion of
operating lease liabilities
|
12.7
|
|
12.0
|
|
Trade accounts
payable
|
52.1
|
|
67.9
|
|
Accrued
expenses
|
97.2
|
|
98.9
|
|
Liabilities held for
sale
|
2.5
|
|
0.8
|
|
Total Current
Liabilities
|
170.7
|
|
185.8
|
|
Long-Term
Debt
|
258.3
|
|
226.3
|
|
Operating Lease
Liabilities
|
29.5
|
|
32.5
|
|
Deferred Tax
Liabilities
|
28.7
|
|
25.4
|
|
Other Long-Term
Liabilities
|
15.6
|
|
23.5
|
|
Liabilities Held for
Sale
|
—
|
|
2.2
|
|
TOTAL
LIABILITIES
|
502.8
|
|
495.7
|
|
Stockholders'
Equity
|
1,222.1
|
|
1,291.2
|
|
TOTAL LIABILITIES
AND STOCKHOLDERS' EQUITY
|
$
1,724.9
|
|
$
1,786.9
|
|
AVANOS MEDICAL,
INC.
CONDENSED
CONSOLIDATED CASH FLOW STATEMENTS
(unaudited)
(in
millions)
|
|
|
Three Months Ended
September 30,
|
|
Nine Months Ended
September 30,
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
|
Operating
Activities
|
|
|
|
|
|
|
|
|
Net (loss)
income
|
$
(3.7)
|
|
$
15.7
|
|
$
(72.3)
|
|
$
33.6
|
|
Depreciation and
amortization
|
11.0
|
|
11.6
|
|
34.6
|
|
34.3
|
|
Loss on asset
dispositions
|
1.1
|
|
—
|
|
1.1
|
|
—
|
|
Goodwill
impairment
|
—
|
|
—
|
|
59.1
|
|
—
|
|
Changes in operating
assets and liabilities, net of acquisition
|
20.6
|
|
(3.4)
|
|
(12.1)
|
|
(22.7)
|
|
Deferred income taxes
and other
|
0.1
|
|
4.5
|
|
9.3
|
|
12.0
|
|
Cash Provided by
Operating Activities
|
29.1
|
|
28.4
|
|
19.7
|
|
57.2
|
|
Investing
Activities
|
|
|
|
|
|
|
|
|
Capital
expenditures
|
(3.9)
|
|
(5.3)
|
|
(11.9)
|
|
(14.4)
|
|
Acquisition of assets
and investments in businesses
|
(45.0)
|
|
0.6
|
|
(47.5)
|
|
(116.1)
|
|
Cash Used in
Investing Activities
|
(48.9)
|
|
(4.7)
|
|
(59.4)
|
|
(130.5)
|
|
Financing
Activities
|
|
|
|
|
|
|
|
|
Proceeds from issuance
of secured debt
|
—
|
|
—
|
|
—
|
|
250.0
|
|
Secured debt
repayments
|
—
|
|
—
|
|
(3.1)
|
|
(125.0)
|
|
Revolving credit
facility proceeds
|
55.0
|
|
—
|
|
55.0
|
|
150.0
|
|
Revolving credit
facility repayments
|
—
|
|
—
|
|
(20.0)
|
|
(150.0)
|
|
Payments of debt
issuance costs
|
—
|
|
—
|
|
—
|
|
(2.9)
|
|
Purchase of treasury
stock
|
(9.2)
|
|
(11.0)
|
|
(12.9)
|
|
(45.1)
|
|
Proceeds from the
exercise of stock options
|
0.9
|
|
0.8
|
|
1.5
|
|
1.6
|
|
Cash Provided by
(Used in) Financing Activities
|
46.7
|
|
(10.2)
|
|
20.5
|
|
78.6
|
|
Effect of Exchange Rate
Changes on Cash and Cash Equivalents
|
(1.6)
|
|
(3.0)
|
|
(1.4)
|
|
(6.8)
|
|
Decrease in Cash and
Cash Equivalents
|
25.3
|
|
10.5
|
|
(20.6)
|
|
(1.5)
|
|
Cash and Cash
Equivalents - Beginning of Period
|
81.8
|
|
106.5
|
|
127.7
|
|
118.5
|
|
Cash and Cash
Equivalents - End of Period
|
$
107.1
|
|
$
117.0
|
|
$
107.1
|
|
$
117.0
|
|
AVANOS MEDICAL,
INC.
SELECTED BUSINESS
AND PRODUCTS DATA
(unaudited)
(in
millions)
|
|
|
Three Months
Ended
September 30,
|
|
|
|
Nine Months
Ended
September 30,
|
|
|
|
2023
|
|
2022
|
|
Change
|
|
2023
|
|
2022
|
|
Change
|
|
Digestive
Health
|
$
95.0
|
|
$
85.9
|
|
10.6 %
|
|
$ 276.8
|
|
$ 247.5
|
|
11.8 %
|
|
Pain Management and
Recovery:
|
|
|
|
|
|
|
|
|
|
|
|
|
Surgical pain and
recovery
|
$
34.1
|
|
$
38.9
|
|
(12.3) %
|
|
$ 103.6
|
|
$ 118.8
|
|
(12.8) %
|
|
Interventional
pain
|
42.2
|
|
47.5
|
|
(11.2) %
|
|
119.6
|
|
136.2
|
|
(12.2) %
|
|
Total Pain Management
and Recovery
|
76.3
|
|
86.4
|
|
(11.7) %
|
|
223.2
|
|
255.0
|
|
(12.5) %
|
|
Total Net
Sales
|
$
171.3
|
|
$ 172.3
|
|
(0.6) %
|
|
$ 500.0
|
|
$ 502.5
|
|
(0.5) %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
Volume
|
|
Pricing/Mix
|
|
Currency
|
|
Other
|
|
Net sales - percentage
change
|
QTD
|
|
(0.6) %
|
|
(0.9) %
|
|
0.2 %
|
|
0.2 %
|
|
(0.1) %
|
|
Net sales - percentage
change
|
YTD
|
|
(0.5) %
|
|
(0.8) %
|
|
0.7 %
|
|
(0.4) %
|
|
— %
|
View original content to download
multimedia:https://www.prnewswire.com/news-releases/avanos-medical-inc-announces-third-quarter-2023-results-301973768.html
SOURCE Avanos Medical, Inc.