ALPHARETTA, Ga., Aug. 9, 2022
/PRNewswire/ -- Avanos Medical, Inc. (NYSE: AVNS) today
reported second quarter 2022 financial results.
"Despite ongoing raw material availability and associated supply
chain disruptions, underlying demand for our products remains
strong," said Joe Woody, Avanos'
Chief Executive Officer. Woody continued, "We delivered on
expansion of our gross and operating margin, and generated
meaningful free cash flow in a tough environment inclusive of
inflationary and foreign currency headwinds. We anticipate strong
results for the full year despite continued macroeconomic and
supply chain challenges."
Second Quarter 2022 Financial Highlights
- Net sales totaled $203 million, a
9 percent increase from the comparable prior year period.
- Gross margin for the quarter improved 1,100 basis points
compared to the prior year period and adjusted gross margin
improved 800 basis points compared to the prior year period.
- Net income for the quarter was $11
million, compared to $38
million a year ago.
- Adjusted net income totaled $19
million, compared to $10
million a year ago.
- Diluted earnings per share was $0.24, compared to $0.78 per share a year ago.
- Adjusted diluted earnings per share was $0.41, compared to $0.21 a year ago.
- Free cash flow for the quarter was $23
million, compared to $10
million a year ago.
Operational and Business Highlights
- During the second quarter, we entered into a credit agreement
that established credit facilities in an aggregate principal amount
of $500 million, consisting of a
five-year senior secured term loan of $125
million and a five-year senior secured revolving credit
facility allowing borrowings of up to $375
million, with a letter of credit subfacility in an amount of
$75 million.
- At the American Society of Interventional Pain Physicians
meeting in May, data from our recent sponsored trial comparing
cooled radiofrequency ablation to standard medical management for
sacroiliac joint pain was accepted for a podium presentation. This
data was ranked as one of the top 11 abstracts submitted to this
conference, highlighting the impact of this data in the pain
management field.
- Our hyaluronic acid (HA) offerings through OrthogenRx posted
strong sales in the second quarter, with a rapid adoption of
TriVisc, our 3-injection HA regimen, beginning in June. With our
reimbursement position, we will continue to see favorability in
TriVisc that is capturing share from the 1- and 5-injection
segments with account transitions and new account
acquisitions.
Second Quarter 2022 Operating Results
For the three months ended June 30, 2022, net sales totaled
$203 million, an increase of 9
percent compared to the prior year period, primarily due to
incremental revenue from the acquisition of OrthogenRx. In addition
to volume, 1 percent of favorable pricing was offset by 2 percent
of unfavorable foreign currency translation effects.
Gross margin was 57 percent, compared to 46 percent in the prior
year period. Adjusted gross margin was 59 percent, compared to 51
percent last year. Gross profit margin improved primarily due to
favorable product mix, as well as slightly improved manufacturing
efficiencies that were partially offset by higher costs across our
supply chain.
Selling and general expenses as a percentage of net sales was 43
percent for the second quarter of 2022, compared to 46 percent for
the first quarter of 2022.
Operating profit was $19 million
compared to a $7 million operating
loss in the prior year period, primarily due to the improved gross
margin previously noted as well as lower legal expenses. On an
adjusted basis, operating profit totaled $28
million, compared to $15
million a year ago.
Adjusted EBITDA for the second quarter was $33 million, compared to $20 million in the prior year period.
First Six Months 2022 Operating Results
For the six months ended June 30, 2022, net sales were
$400 million, an increase of 9
percent compared to the prior year period. Digestive health
products experienced strong demand and volume, which was offset by
decreased demand and volume in respiratory health products. In
addition to volume, 1 percent of favorable pricing was offset by 1
percent of unfavorable foreign currency translation effects.
Gross margin was 55 percent, compared to 48 percent last year.
Adjusted gross margin was 57 percent compared to 52 percent last
year and was impacted by the same items noted above for the second
quarter.
Operating profit was $28 million,
compared to operating loss of $20
million in the prior year period, primarily due to the
improved gross margin previously noted as well as lower legal
expenses, partially offset by higher selling and general expenses.
On an adjusted basis, operating profit was $46 million compared to $31 million a year ago.
Adjusted EBITDA for the six months ended June 30, 2022 was
$57 million compared to $42 million in the prior year period.
Cash Flow and Balance Sheet
Cash from operations less capital expenditures, or free cash
flow, for the second quarter was $23
million, compared to $10
million a year ago. The company's cash balance at
June 30, 2022 was $107 million,
compared to $119 million at year-end
2021.
Total long-term debt outstanding was $254 million at
June 30, 2022, compared to $130
million at December 31, 2021.
In the first quarter of 2022, the company borrowed $125 million in conjunction with closing the
acquisition of OrthogenRx.
Full-Year 2022 Outlook
The company is modifying its guidance for 2022 net sales to
between $815 million and $835 million, which assumes organic growth
between 1 percent to 4 percent. Additionally, we are confirming
gross profit margins to be between 55 percent to 57 percent, with
adjusted diluted earnings per share between $1.45 and $1.65.
Each of these measures is inclusive of the impact of the
OrthogenRx acquisition and reflects our expectation that supply
chain headwinds related to both product availability and
inflationary pressures will continue throughout 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:
- Expenses associated with restructuring activities.
- Expenses associated with post divestiture transition
activities.
- Certain acquisition and integration charges related to
acquisitions.
- Expenses associated with European Union Medical Device
Regulation ("EU MDR") compliance.
- Expenses associated with certain litigation matters.
- The amortization of intangible assets associated with prior
business acquisitions.
- Loss on extinguishment of debt.
- 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 8164434. 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 device company focused
on delivering clinically superior breakthrough solutions that will
help patients get back to the things that matter. Headquartered in
Alpharetta, Georgia, Avanos is
committed to creating the next generation of innovative healthcare
solutions which will address our most important healthcare needs,
such as reducing the use of opioids while helping patients move
from surgery to recovery. Avanos develops, manufactures and markets
its recognized brands in more than 90 countries. 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; risks related to the ongoing COVID-19 pandemic; shortage
in drugs used in our Acute Pain products or other disruptions in
our supply chain; the ongoing conflict between Russia and Ukraine; 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. 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
June 30,
|
|
Six Months Ended
June 30,
|
|
2022
|
|
2021
|
|
2022
|
|
2021
|
Net
Sales
|
$
203.0
|
|
$
186.4
|
|
$
400.4
|
|
$
367.1
|
Cost of products
sold
|
88.1
|
|
100.7
|
|
178.3
|
|
190.1
|
Gross
Profit
|
114.9
|
|
85.7
|
|
222.1
|
|
177.0
|
Research and
development expenses
|
8.0
|
|
8.0
|
|
15.8
|
|
16.3
|
Selling and general
expenses
|
87.1
|
|
76.7
|
|
177.2
|
|
150.1
|
Other expense,
net
|
0.8
|
|
8.3
|
|
0.9
|
|
30.3
|
Operating Income
(Loss)
|
19.0
|
|
(7.3)
|
|
28.2
|
|
(19.7)
|
Interest
income
|
0.2
|
|
—
|
|
0.2
|
|
—
|
Interest
expense
|
(2.7)
|
|
(0.9)
|
|
(4.0)
|
|
(1.7)
|
Income (Loss) Before
Income Taxes
|
16.5
|
|
(8.2)
|
|
24.4
|
|
(21.4)
|
Income tax (provision)
benefit
|
(5.1)
|
|
46.1
|
|
(7.2)
|
|
51.7
|
Net
Income
|
$
11.4
|
|
$
37.9
|
|
$
17.2
|
|
$
30.3
|
|
|
|
|
|
|
|
|
Interest expense,
net
|
$
2.5
|
|
$
0.9
|
|
$
3.8
|
|
$
1.7
|
Income tax provision
(benefit)
|
5.1
|
|
(46.1)
|
|
7.2
|
|
(51.7)
|
Depreciation and
amortization
|
11.6
|
|
9.5
|
|
22.7
|
|
19.2
|
EBITDA
|
$
30.6
|
|
$
2.2
|
|
$
50.9
|
|
$
(0.5)
|
|
|
|
|
|
|
|
|
Earnings Per
Share
|
|
|
|
|
|
|
|
Basic
|
$
0.24
|
|
$
0.79
|
|
$
0.36
|
|
$
0.63
|
Diluted
|
0.24
|
|
0.78
|
|
0.36
|
|
0.62
|
|
|
|
|
|
|
|
|
Common Shares
Outstanding
|
|
|
|
|
|
|
|
Basic
|
47.2
|
|
48.1
|
|
47.3
|
|
48.0
|
Diluted
|
47.6
|
|
48.6
|
|
47.7
|
|
48.6
|
AVANOS MEDICAL,
INC.
|
NON-GAAP
RECONCILIATIONS
|
(unaudited)
|
(in
millions)
|
|
|
Gross
Profit
|
|
Three Months Ended
June 30,
|
|
Six Months Ended
June 30,
|
|
2022
|
|
2021
|
|
2022
|
|
2021
|
As reported
|
$
114.9
|
|
$
85.7
|
|
$
222.1
|
|
$
177.0
|
2020 Restructuring
charges
|
—
|
|
2.8
|
|
—
|
|
3.0
|
Post divestiture
restructuring charges
|
—
|
|
1.7
|
|
—
|
|
2.6
|
Post divestiture
transition charges
|
—
|
|
3.7
|
|
—
|
|
3.8
|
Acquisition and
integration-related charges
|
0.7
|
|
—
|
|
1.4
|
|
—
|
Intangibles
amortization
|
3.5
|
|
1.7
|
|
6.6
|
|
3.3
|
As adjusted
non-GAAP
|
$
119.1
|
|
$
95.6
|
|
$
230.1
|
|
$
189.7
|
Gross profit margin, as
reported
|
56.6 %
|
|
46.0 %
|
|
55.5 %
|
|
48.2 %
|
Gross profit margin, as
adjusted
|
58.7 %
|
|
51.3 %
|
|
57.5 %
|
|
51.7 %
|
|
Operating Profit
(Loss)
|
|
Three Months Ended
June 30,
|
|
Six Months Ended
June 30,
|
|
2022
|
|
2021
|
|
2022
|
|
2021
|
As reported
|
$
19.0
|
|
$
(7.3)
|
|
$
28.2
|
|
$
(19.7)
|
COVID-19 related
expenses
|
—
|
|
0.2
|
|
—
|
|
0.2
|
2020 Restructuring
charges
|
—
|
|
8.5
|
|
—
|
|
8.7
|
Post divestiture
restructuring charges
|
—
|
|
1.7
|
|
—
|
|
2.6
|
Post divestiture
transition charges
|
—
|
|
3.6
|
|
—
|
|
3.6
|
Acquisition and
integration-related charges
|
1.0
|
|
0.2
|
|
2.8
|
|
0.6
|
EU MDR Compliance
(a)
|
1.7
|
|
1.0
|
|
3.2
|
|
1.2
|
Litigation and
legal
|
—
|
|
2.7
|
|
—
|
|
25.2
|
Intangibles
amortization
|
6.2
|
|
4.1
|
|
11.9
|
|
8.3
|
As adjusted
non-GAAP
|
$
27.9
|
|
$
14.7
|
|
$
46.1
|
|
$
30.7
|
|
|
|
|
(a)
|
EU MDR Compliance
related charges are included in "Selling and general
expenses".
|
AVANOS MEDICAL,
INC.
|
NON-GAAP
RECONCILIATIONS
|
(unaudited)
|
|
|
Income (Loss) Before
Taxes
|
|
Three Months Ended
June 30,
|
|
Six Months Ended
June 30,
|
|
2022
|
|
2021
|
|
2022
|
|
2021
|
As reported
|
$
16.5
|
|
$
(8.2)
|
|
$
24.4
|
|
$
(21.4)
|
COVID-19 related
expenses
|
—
|
|
0.2
|
|
—
|
|
0.2
|
2020 Restructuring
charges
|
—
|
|
8.5
|
|
—
|
|
8.7
|
Post divestiture
restructuring charges
|
—
|
|
1.7
|
|
—
|
|
2.6
|
Post divestiture
transition charges
|
—
|
|
3.6
|
|
—
|
|
3.6
|
Acquisition and
integration-related charges
|
1.0
|
|
0.2
|
|
2.8
|
|
0.6
|
EU MDR
Compliance
|
1.7
|
|
1.0
|
|
3.2
|
|
1.2
|
Litigation and
legal
|
—
|
|
2.7
|
|
—
|
|
25.2
|
Intangibles
amortization
|
6.2
|
|
4.1
|
|
11.9
|
|
8.3
|
Loss on extinguishment
of debt
|
1.1
|
|
—
|
|
1.1
|
|
—
|
As adjusted
non-GAAP
|
$
26.5
|
|
$
13.8
|
|
$
43.4
|
|
$
29.0
|
|
Tax Benefit
(Provision)
|
|
Three Months Ended
June 30,
|
|
Six Months Ended
June 30,
|
|
2022
|
|
2021
|
|
2022
|
|
2021
|
As reported
|
$
(5.1)
|
|
$
46.1
|
|
$
(7.2)
|
|
$
51.7
|
Tax effects of
adjusting items
|
(2.0)
|
|
(47.1)
|
|
(4.5)
|
|
(57.0)
|
Effects of the CARES
Act and other
|
—
|
|
(2.7)
|
|
—
|
|
(2.5)
|
As adjusted
non-GAAP
|
$
(7.1)
|
|
$
(3.7)
|
|
$
(11.7)
|
|
$
(7.8)
|
Effective tax rate, as
reported
|
30.9 %
|
|
(562.2) %
|
|
29.5 %
|
|
(241.6) %
|
Effective tax rate, as
adjusted
|
26.8 %
|
|
26.8 %
|
|
27.0 %
|
|
26.9 %
|
AVANOS MEDICAL,
INC.
|
NON-GAAP
RECONCILIATIONS
|
(unaudited)
|
(in millions, except
per share amounts)
|
|
|
Net Income
(Loss)
|
|
Three Months Ended
June 30,
|
|
Six Months Ended
June 30,
|
|
2022
|
|
2021
|
|
2022
|
|
2021
|
As reported
|
$
11.4
|
|
$
37.9
|
|
$
17.2
|
|
$
30.3
|
COVID-19 related
expenses
|
—
|
|
0.2
|
|
—
|
|
0.2
|
2020 Restructuring
charges
|
—
|
|
8.5
|
|
—
|
|
8.7
|
Post divestiture
restructuring charges
|
—
|
|
1.7
|
|
—
|
|
2.6
|
Post divestiture
transition charges
|
—
|
|
3.6
|
|
—
|
|
3.6
|
Acquisition and
integration-related charges
|
1.0
|
|
0.2
|
|
2.8
|
|
0.6
|
EU MDR
Compliance
|
1.7
|
|
1.0
|
|
3.2
|
|
1.2
|
Litigation and
legal
|
—
|
|
2.7
|
|
—
|
|
25.2
|
Intangibles
amortization
|
6.2
|
|
4.1
|
|
11.9
|
|
8.3
|
Loss on extinguishment
of debt
|
1.1
|
|
—
|
|
1.1
|
|
—
|
Tax effects of
adjusting items
|
(2.0)
|
|
(47.1)
|
|
(4.5)
|
|
(57.0)
|
Tax effects of the
CARES Act and other
|
—
|
|
(2.7)
|
|
—
|
|
(2.5)
|
As adjusted
non-GAAP
|
$
19.4
|
|
$
10.1
|
|
$
31.7
|
|
$
21.2
|
Diluted EPS, as
reported
|
$
0.24
|
|
$
0.78
|
|
$
0.36
|
|
$
0.62
|
Diluted EPS, as
adjusted
|
$
0.41
|
|
$
0.21
|
|
$
0.66
|
|
$
0.44
|
|
EBITDA
|
|
Three Months Ended
June 30,
|
|
Six Months Ended
June 30,
|
|
2022
|
|
2021
|
|
2022
|
|
2021
|
EBITDA, as
reported
|
$
30.6
|
|
$
2.2
|
|
$
50.9
|
|
$
(0.5)
|
COVID-19 related
expenses
|
—
|
|
0.2
|
|
—
|
|
0.2
|
2020 Restructuring
charges
|
—
|
|
8.5
|
|
—
|
|
8.7
|
Post divestiture
restructuring charges
|
—
|
|
1.7
|
|
—
|
|
2.6
|
Post divestiture
transition charges
|
—
|
|
3.6
|
|
—
|
|
3.6
|
Acquisition and
integration-related charges
|
1.0
|
|
0.2
|
|
2.8
|
|
0.6
|
EU MDR
Compliance
|
1.7
|
|
1.0
|
|
3.2
|
|
1.2
|
Litigation and
legal
|
—
|
|
2.7
|
|
—
|
|
25.2
|
Adjusted
EBITDA
|
$
33.3
|
|
$
20.1
|
|
$
56.9
|
|
$
41.6
|
AVANOS MEDICAL,
INC.
|
NON-GAAP
RECONCILIATIONS
|
(unaudited)
|
(in
millions)
|
|
|
Free Cash
Flow
|
|
Three Months Ended
June 30,
|
|
Six Months Ended
June 30,
|
|
2022
|
|
2021
|
|
2022
|
|
2021
|
Cash provided by
operating activities
|
$
27.0
|
|
$
15.3
|
|
$
28.8
|
|
$
12.0
|
Capital
expenditures
|
(4.1)
|
|
(5.8)
|
|
(9.1)
|
|
(11.5)
|
Free Cash
Flow
|
$
22.9
|
|
$
9.5
|
|
$
19.7
|
|
$
0.5
|
2022
OUTLOOK
|
|
|
Estimated
Range
|
Diluted earnings per
share (GAAP)
|
$
0.95
|
to
|
$
1.25
|
Intangibles
amortization
|
0.25
|
to
|
0.25
|
Other
|
0.25
|
to
|
0.15
|
Adjusted diluted
earnings per share (non-GAAP)
|
$
1.45
|
to
|
$
1.65
|
AVANOS MEDICAL,
INC.
|
CONDENSED
CONSOLIDATED BALANCE SHEETS
|
(unaudited)
|
(in
millions)
|
|
|
June 30,
2022
|
|
December 31,
2021
|
ASSETS
|
|
|
|
Current
Assets
|
|
|
|
Cash and cash
equivalents
|
$
106.5
|
|
$
118.5
|
Accounts receivable,
net
|
145.4
|
|
131.2
|
Inventories
|
169.0
|
|
150.3
|
Prepaid and other
current assets
|
16.2
|
|
18.6
|
Total Current
Assets
|
437.1
|
|
418.6
|
Property, Plant and
Equipment, net
|
164.3
|
|
168.1
|
Operating Lease
Right-of-Use Assets
|
33.9
|
|
38.6
|
Goodwill
|
825.0
|
|
801.6
|
Other Intangible
Assets, net
|
264.9
|
|
141.2
|
Deferred Tax
Assets
|
11.1
|
|
10.0
|
Other
Assets
|
16.5
|
|
16.5
|
TOTAL
ASSETS
|
$
1,752.8
|
|
$
1,594.6
|
|
|
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
Current
Liabilities
|
|
|
|
Current portion of
long-term debt
|
$
4.7
|
|
$
—
|
Current portion of
operating lease liabilities
|
13.5
|
|
14.7
|
Trade accounts
payable
|
64.2
|
|
56.4
|
Accrued
expenses
|
68.7
|
|
68.1
|
Total Current
Liabilities
|
151.1
|
|
139.2
|
Long-Term
Debt
|
249.3
|
|
130.0
|
Operating Lease
Liabilities
|
38.4
|
|
42.8
|
Deferred Tax
Liabilities
|
34.7
|
|
9.6
|
Other Long-Term
Liabilities
|
27.7
|
|
9.1
|
TOTAL
LIABILITIES
|
501.2
|
|
330.7
|
Stockholders'
Equity
|
1,251.6
|
|
1,263.9
|
TOTAL LIABILITIES
AND STOCKHOLDERS' EQUITY
|
$
1,752.8
|
|
$
1,594.6
|
AVANOS MEDICAL,
INC.
|
CONDENSED
CONSOLIDATED CASH FLOW STATEMENTS
|
(unaudited)
|
(in
millions)
|
|
|
Three Months Ended
June 30,
|
|
Six Months Ended
June 30,
|
|
2022
|
|
2021
|
|
2022
|
|
2021
|
Operating
Activities
|
|
|
|
|
|
|
|
Net income
|
$
11.4
|
|
$
37.9
|
|
$
17.2
|
|
$
30.3
|
Depreciation and
amortization
|
11.6
|
|
9.5
|
|
22.7
|
|
19.2
|
Net loss on asset
dispositions
|
—
|
|
4.8
|
|
—
|
|
4.9
|
Changes in operating
assets and liabilities, net of acquisition
|
(0.1)
|
|
6.2
|
|
(18.6)
|
|
3.5
|
Deferred income taxes
and other
|
4.1
|
|
(43.1)
|
|
7.5
|
|
(45.9)
|
Cash Provided by
Operating Activities
|
27.0
|
|
15.3
|
|
28.8
|
|
12.0
|
Investing
Activities
|
|
|
|
|
|
|
|
Capital
expenditures
|
(4.1)
|
|
(5.8)
|
|
(9.1)
|
|
(11.5)
|
Acquisition of assets
and investments in businesses
|
—
|
|
—
|
|
(116.7)
|
|
—
|
Cash Used in
Investing Activities
|
(4.1)
|
|
(5.8)
|
|
(125.8)
|
|
(11.5)
|
Financing
Activities
|
|
|
|
|
|
|
|
Proceeds from issuance
of secured debt
|
125.0
|
|
—
|
|
250.0
|
|
—
|
Secured debt
repayments
|
(125.0)
|
|
—
|
|
(125.0)
|
|
—
|
Revolving credit
facility proceeds
|
130.0
|
|
—
|
|
150.0
|
|
—
|
Revolving credit
facility repayments
|
(130.0)
|
|
(10.0)
|
|
(150.0)
|
|
(15.0)
|
Purchase of treasury
stock
|
(14.7)
|
|
(0.5)
|
|
(34.1)
|
|
(0.5)
|
Payments of debt
issuance costs
|
(2.3)
|
|
—
|
|
(2.9)
|
|
—
|
Proceeds from the
exercise of stock options
|
0.1
|
|
0.4
|
|
0.8
|
|
5.2
|
Cash Provided by
(Used in) Financing Activities
|
(16.9)
|
|
(10.1)
|
|
88.8
|
|
(10.3)
|
Effect of Exchange Rate
Changes on Cash and Cash Equivalents
|
(3.8)
|
|
0.4
|
|
(3.8)
|
|
(1.8)
|
Increase (Decrease)
in Cash and Cash Equivalents
|
2.2
|
|
(0.2)
|
|
(12.0)
|
|
(11.6)
|
Cash and Cash
Equivalents - Beginning of Period
|
104.3
|
|
100.1
|
|
118.5
|
|
111.5
|
Cash and Cash
Equivalents - End of Period
|
$
106.5
|
|
$
99.9
|
|
$
106.5
|
|
$
99.9
|
AVANOS MEDICAL,
INC.
|
SELECTED BUSINESS
AND PRODUCTS DATA
|
(unaudited)
|
(in
millions)
|
|
|
Three Months Ended
June 30,
|
|
|
|
Six Months Ended
June 30,
|
|
|
|
2022
|
|
2021
|
|
Change
|
|
2022
|
|
2021
|
|
Change
|
Chronic
Care:
|
|
|
|
|
|
|
|
|
|
|
|
Digestive
health
|
$
80.2
|
|
$
79.5
|
|
0.9 %
|
|
$
161.6
|
|
$ 157.5
|
|
2.6 %
|
Respiratory
health
|
32.1
|
|
36.5
|
|
(12.1) %
|
|
70.2
|
|
79.6
|
|
(11.8) %
|
Total Chronic
Care
|
112.3
|
|
116.0
|
|
(3.2) %
|
|
231.8
|
|
237.1
|
|
(2.2) %
|
Pain
Management:
|
|
|
|
|
|
|
|
|
|
|
|
Acute pain
|
$
41.2
|
|
$
43.7
|
|
(5.7) %
|
|
$
79.9
|
|
$
80.8
|
|
(1.1) %
|
Interventional
pain
|
49.5
|
|
26.7
|
|
85.4 %
|
|
88.7
|
|
49.2
|
|
80.3 %
|
Total Pain
Management
|
90.7
|
|
70.4
|
|
28.8 %
|
|
168.6
|
|
130.0
|
|
29.7 %
|
Total Net
Sales
|
$
203.0
|
|
$ 186.4
|
|
8.9 %
|
|
$
400.4
|
|
$ 367.1
|
|
9.1 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
Volume(a)
|
|
Pricing/Mix
|
|
Currency
|
|
Other(b)
|
Net sales - percentage
change
|
QTD
|
|
8.9 %
|
|
10.2 %
|
|
0.5 %
|
|
(1.7) %
|
|
(0.1) %
|
Net sales - percentage
change
|
YTD
|
|
9.1 %
|
|
9.9 %
|
|
0.5 %
|
|
(1.4) %
|
|
0.1 %
|
|
|
|
|
(a)
|
Volume includes
incremental sales from acquisitions.
|
(b)
|
Other includes
rounding.
|
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SOURCE Avanos Medical, Inc.