Avanos Medical, Inc. · NYSE:AVNS
Avanos Medical — Q1 2025 Earnings Presentation
21 slides from Avanos Medical's earnings presentation, May 6, 2025
Slide 1: Q1 2025 Earnings Presentation
Q1 2025 Earnings Presentation May 6, 2025 Getting patients back to the things that matter.
Slide 2: Presenters and agenda
Dave Pacitti Jason Pickett Scott Galovan SVP, Strategy & Corporate Chief Executive Officer Interim Chief Financial Officer Development Q1 Results & Q1 Results & 2025 Q&A Business Environment Planning Assumptions
Slide 3: Disclaimer Regarding Forward-Looking Statements
DISCLAIMER REGARDING FORWARD-LOOKING STATEMENTS Certain matters in this presentation, including expectations and planning assumptions, any comments about our expected performance, and any estimates, projections, or statements relating to our business plans, objectives, acquisitions and transformatio
Slide 4: Strong First Quarter
Strong First Quarter • Solid commercial execution and mid-single-digit organic growth on our strategic segments • Company is well-positioned to improve growth profile and margin expansion • Remained focused on getting patients back to the things that matter 4
Slide 5: First Quarter Delivers 18% Adjusted EPS Growth
First Quarter Delivers 18% Adjusted EPS Growth Net Sales Adjusted EBITDA Adjusted EPS Millions Millions $166 $168 $22 $22 $0.26 $0.22 4.7% 2.8% 13% 13% organic organic margin margin growth growth Q1 2024 Q1 2025 Q1 2024 Q1 2025 Q1 2024 Q1 2025 +18% Numbers include rounding 5
Slide 6: Maintaining Strong Financial Position
Maintaining Strong Financial Position • Healthy balance sheet provides $ in millions 12/31/24 3/31/25 strategic capital allocation flexibility Cash $108 $97 • Generated $19 million of free cash Term Debt (110) (107) flow during the quarter Revolver (25) - • Continuing to pursue active M&A Net (Debt)
Slide 7: Implemented Segment Reporting
Implemented Segment Reporting Specialty Nutrition Systems Pain Management & Recovery Long-Term Feeding Radiofrequency Ablation Short-Term Feeding Surgical Pain Pumps Neonate Solutions Cold & Compression Therapy Hyaluronic Acid injections and intravenous infusion product lines are combined and report
Slide 8: Specialty Nutrition Systems Growing ~9%
Specialty Nutrition Systems Growing ~9% Strong Organic Topline Growth and Margin Expansion Net Sales GAAP Operating Profit Millions Millions $101 $21 $95 $15 9.4% 8.8% 21% organic 16% organic margin growth margin growth Q1 2024 Q1 2025 Q1 2024 Q1 2025 • Continued above market growth • Operating Prof
Slide 9: Pain Management & Recovery Stabilization
Pain Management & Recovery Stabilization Low Single-Digit Growth and Margin Parity Net Sales GAAP Operating Profit Millions Millions $56 $56 $0 Q1 2024 Q1 2025 1.1% 2.4% organic organic growth -$2 growth Q1 2024 Q1 2025 • Near double-digit growth in our RFA business • Operating Profit improvement th
Slide 10: Transformation Programs Embedded in Operations
Transformation Programs Embedded in Operations Cost Capital 1 Optimization 2 Portfolio 3 4 Management Allocation Strategic & Transform the Additional Cost Continued Efficient Commercial Product Portfolio Management Capital Allocation Optimization Initiatives to Strategies to Enhance Operating Expand
Slide 11: 2025 Outlook in Dynamic Environment
2025 Outlook in Dynamic Environment Sales Maintaining estimate of $665 million to $685 million Adjusted Lowering estimate to $0.75 to $0.95 primarily due to Diluted EPS tariff impacts 11
Slide 12: Thank You
Thank You
Slide 13: Appendices: Non-GAAP Reconciliations
APPENDICES Non-GAAP Reconciliations
Slide 14: Non-GAAP Reconciliations
NON-GAAP RECONCILIATIONS In millions Gross Profit Three Months Three Months Ended March 31, 2024 Ended March 31, Continuing Discontinued 2025 Operations Operations Total As reported $ 89.8 $ 94.8 $ 1.0 $ 95.8 Restructuring and transformation charges — 0.7 — 0.7 Post RH-Divestiture transition charges
Slide 15: Non-GAAP Reconciliations
NON-GAAP RECONCILIATIONS In millions Operating Income (Loss) Three Months Three Months Ended March 31, 2024 Ended March 31, Continuing Discontinued 2025 Operations Operations Total As reported $ 10.3 $ 4.0 $ (1.9) $ 2.1 Acquisition and integration-related charges — 0.3 — 0.3 Restructuring and transf
Slide 16: Non-GAAP Reconciliations
NON-GAAP RECONCILIATIONS In millions Income (Loss) Before Taxes Three Months Three Months Ended March 31, 2024 Ended March 31, Continuing Discontinued 2025 Operations Operations Total As reported $ 9.7 $ 1.5 $ (1.9) $ (0.4) Acquisition and integration-related charges — 0.3 — 0.3 Restructuring and tr
Slide 17: Non-GAAP Reconciliations
NON-GAAP RECONCILIATIONS In millions Tax (Provision) Benefit Three Months Three Months Ended March 31, 2024 Ended March 31, Continuing Discontinued 2025 Operations Operations Total As reported $ (3.1) $ (1.0) $ 0.5 $ (0.5) Tax effects of adjusting items (1.4) (2.7) — (2.7) As adjusted non-GAAP $ (4.
Slide 18: Non-GAAP Reconciliations
NON-GAAP RECONCILIATIONS I n m i l l i o n s (except per-share amounts) Net Income (Loss) Three Months Three Months Ended March 31, 2024 Ended March 31, Continuing Discontinued 2025 Operations Operations Total As reported $ 6.6 $ 0.5 $ (1.4) $ (0.9) Acquisition and integration-related charges — 0.3
Slide 19: Non-GAAP Reconciliations
NON-GAAP RECONCILIATIONS In millions Selling, General and Administrative Expense Three Months Three Months Ended March 31, 2024 Ended March 31, Continuing Discontinued 2025 Operations Operations Total As reported $ 75.7 $ 83.6 $ — $ 83.6 Acquisition and integration-related charges — (0.3) — (0.3) Re
Slide 20: Non-GAAP Reconciliations
NON-GAAP RECONCILIATIONS In millions EBITDA Three Months Three Months Ended March 31, 2024 Ended March 31, Continuing Discontinued 2025 Operations Operations Total Net income (loss) $ 6.6 $ 0.5 $ (1.4) $ (0.9) Interest expense, net 0.6 2.5 — 2.5 Income tax provision (benefit) 3.1 1.0 (0.5) 0.5 Depre
Slide 21: Non-GAAP Reconciliations
NON-GAAP RECONCILIATIONS In millions Three Months Ended March 31, 2025 2024 Cash provided by operating activities $ 25.7 $ (8.0) Capital expenditures (6.7) (4.1) Free Cash Flow $ 19.0 $ (12.1) 2025 Outlook Estimated Range Diluted earnings per share (GAAP) $ 0.33 to $ 0.56 Intangibles amortization 0.