Avanos Medical, Inc. · NYSE:AVNS
Avanos Medical — Q4 2024 Earnings Presentation
28 slides from Avanos Medical's earnings presentation, Feb 26, 2025
Slide 1: Q4 & Full Year 2024 Earnings Presentation
Q4 & Full Year 2024 Earnings Presentation February 26, 2025 Getting patients back to the things that matter.
Slide 2: Michael Greiner, Interim CEO
Michael Greiner Interim CEO 2
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: Reflections on Performance
Reflections on Performance • Strong commercial execution and mid-single-digit organic growth • Completed obligations related to the sale of our Respiratory Health business • Remained focused on getting patients back to the things that matter – more than 2 million in 2024 4
Slide 5: Q4 Performance and FY Performance
Q4 Performance FY Performance Sales Adjusted SG&A Sales Adjusted SG&A Millions Millions Millions Millions $180 $75 $688 $173 $68 $292 $293 $673 (4.5%) 5.0% 38.9% 41.6% Flat 3.3% 43.3% 42.5% decline growth growth Q4 2023 Q4 2024 Q4 2023 Q4 2024 FY 2023 FY 2024 FY 2023 FY 2024 EBITDA Adjusted EPS EBIT
Slide 6: Capital Allocation and Net Debt
Capital Allocation and Net Debt Target margin $ in millions 12/31/23 12/31/24 accretive deals 3% to 4% annually Cash $88 $108 Returns above cost of capital Term Debt (118) (110) M&A R&D SHARE- HOLDER Revolver (50) (25) VALUE CREATION SHARE CAPEX Net (Debt) ($80) ($27) REPURCHASE TTM Adjusted 99 108
Slide 7: Another Strong Quarter for Enteral Feeding
Another Strong Quarter for Enteral Feeding Enteral Feeding Sales * Millions $106 • Enteral Feeding revenue grew nearly 12% for the quarter (constant currency / normalized sales) $94 • NeoMed sales grew double-digits versus prior year • At market growth for legacy Enteral Feeding Q4 2023 Q4 2024 prod
Slide 8: Mixed Progress in our Pain Businesses
Mixed Progress in our Pain Businesses Pain Management & Recovery Sales * • On-Q performance behind PY but up compared to Q3 Millions $77 Continued ambIT double-digit growth $74 • High single-digit growth in IVP (including Trident) through higher procedure volumes Q4 2023 Q4 2024 • HA and Game Ready
Slide 9: Priorities for Reimagining our Business
Priorities for Reimagining our Business 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 Return
Slide 10: Fourth Quarter Progress Toward our Transformation
Fourth Quarter Progress Toward our Transformation Strategic & • Delivered consistent growth in Enteral Feeding leveraging ENFit conversion tailwinds in North America 1 Commercial Optimization • Delivered record generator sales that will enable us to capture higher IVP procedure volumes Transform • C
Slide 11: Segment Reporting
Segment Reporting Specialty Nutrition Pain Management & Corporate and Other Systems Recovery Long-Term Feeding 3-Tier Radiofrequency Ablation Hyaluronic Acid Injections Short-Term Feeding Intravenous Infusion Products Surgical Pain Pumps NICU Feeding & Care Cold & Compression Therapy 11
Slide 12: 2025 Outlook
2025 Outlook $665 million to $685 million • Specialty Nutrition Systems up mid-single digits Sales • Pain Management & Recovery flat to low-single-digit growth • Corporate and Other categories down ~20% • Assumed foreign exchange rates near current levels Adjusted $1.05 to $1.25 Diluted EPS • Assume
Slide 13: Thank You
Thank You
Slide 14: Appendices: Non-GAAP Reconciliations
APPENDICES Non-GAAP Reconciliations
Slide 15: Non-GAAP Reconciliations: Gross Profit (Quarter)
NON-GAAP RECONCILIATIONS In millions Gross Profit Three Months Ended December 31, 2024 Three Months Ended December 31, 2023 Continuing Discontinued Continuing Discontinued Operations Operations Total Operations Operations Total As reported $ 98.0 $ (2.6) $ 95.4 $ 95.0 $ (4.0) $ 91.0 Acquisition and
Slide 16: Non-GAAP Reconciliations: Gross Profit (Year)
NON-GAAP RECONCILIATIONS In millions Gross Profit Year Ended December 31, 2024 Year Ended December 31, 2023 Continuing Discontinued Continuing Discontinued Operations Operations Total Operations Operations Total As reported $ 381.3 $ (9.0) $ 372.3 $ 379.7 $ 32.1 $ 411.8 Acquisition and integration-r
Slide 17: Non-GAAP Reconciliations: Operating Profit (Quarter)
NON-GAAP RECONCILIATIONS In millions Operating Profit (Loss) Three Months Ended December 31, 2024 Three Months Ended December 31, 2023 Continuing Discontinued Continuing Discontinued Operations Operations Total Operations Operations Total As reported $ (418.5) $ (0.2) $ (418.7) $ 11.2 $ (1.8) $ 9.4
Slide 18: Non-GAAP Reconciliations: Operating Profit (Year)
NON-GAAP RECONCILIATIONS In millions Operating Profit (Loss) Year Ended December 31, 2024 Year Ended December 31, 2023 Continuing Discontinued Continuing Discontinued Operations Operations Total Operations Operations Total As reported $ (396.2) $ (7.7) $ (403.9) $ 4.2 $ (51.0) $ (46.8) Acquisition a
Slide 19: Non-GAAP Reconciliations: Income Before Taxes (Quarter)
NON-GAAP RECONCILIATIONS In millions Income (Loss) Before Taxes Three Months Ended December 31, 2024 Three Months Ended December 31, 2023 Continuing Discontinued Continuing Discontinued Operations Operations Total Operations Operations Total As reported $ (420.5) $ (0.2) $ (420.7) $ 8.9 $ (1.8) $ 7.
Slide 20: Non-GAAP Reconciliations: Income Before Taxes (Year)
NON-GAAP RECONCILIATIONS In millions Income (Loss) Before Taxes Year Ended December 31, 2024 Year Ended December 31, 2023 Continuing Discontinued Continuing Discontinued Operations Operations Total Operations Operations Total As reported $ (403.3) $ (7.7) $ (411.0) $ (7.9) $ (51.0) $ (58.9) Acquisit
Slide 21: Non-GAAP Reconciliations: Tax Provision
NON-GAAP RECONCILIATIONS In millions Tax Provision Three Months Ended December 31, 2024 Three Months Ended December 31, 2023 Continuing Discontinued Continuing Discontinued Operations Operations Total Operations Operations Total As reported $ 23.5 $ (0.1) $ 23.4 $ 2.1 $ 1.3 $ 3.4 Tax effects of adju
Slide 22: Non-GAAP Reconciliations: Net Income (Quarter)
NON-GAAP RECONCILIATIONS In millions Net Income (Loss) Three Months Ended December 31, 2024 Three Months Ended December 31, 2023 Continuing Discontinued Continuing Discontinued Operations Operations Total Operations Operations Total As reported $ (397.0) $ (0.3) $ (397.3) $ 11.0 $ (0.5) $ 10.5 Acqui
Slide 23: Non-GAAP Reconciliations: Net Income (Year)
NON-GAAP RECONCILIATIONS In millions Net Income (Loss) Year Ended December 31, 2024 Year Ended December 31, 2023 Continuing Discontinued Continuing Discontinued Operations Operations Total Operations Operations Total As reported $ (386.3) $ (5.8) $ (392.1) $ (9.9) $ (51.9) $ (61.8) Acquisition and i
Slide 24: Non-GAAP Reconciliations: SG&A (Quarter)
NON-GAAP RECONCILIATIONS In millions Selling, General and Administrative Expenses Three Months Ended December 31, 2024 Three Months Ended December 31, 2023 Continuing Discontinued Continuing Discontinued Operations Operations Total Operations Operations Total As reported $ 79.7 $ — $ 79.7 $ 74.5 $ (
Slide 25: Non-GAAP Reconciliations: SG&A (Year)
NON-GAAP RECONCILIATIONS In millions Selling, General and Administrative Expenses Year Ended December 31, 2024 Year Ended December 31, 2023 Continuing Discontinued Continuing Discontinued Operations Operations Total Operations Operations Total As reported $ 318.5 $ — $ 318.5 $ 335.0 $ 11.2 $ 346.2 A
Slide 26: Non-GAAP Reconciliations: EBITDA (Quarter)
NON-GAAP RECONCILIATIONS In millions EBITDA Three Months Ended December 31, 2024 Three Months Ended December 31, 2023 Continuing Discontinued Continuing Discontinued Operations Operations Total Operations Operations Total Net income (loss) $ (397.0) $ (0.3) $ (397.3) $ 11.0 $ (0.5) $ 10.5 Interest e
Slide 27: Non-GAAP Reconciliations: EBITDA (Year)
NON-GAAP RECONCILIATIONS In millions EBITDA Year Ended December 31, 2024 Year Ended December 31, 2023 Continuing Discontinued Continuing Discontinued Operations Operations Total Operations Operations Total Net (loss) income $ (386.3) $ (5.8) $ (392.1) $ (9.9) $ (51.9) $ (61.8) Interest expense, net
Slide 28: Non-GAAP Reconciliations: Free Cash Flow
NON-GAAP RECONCILIATIONS In millions Free Cash Flow Three Months Ended December 31, Year Ended December 31, 2024 2023 2024 2023 Cash provided by (used in) operating activities $ 57.9 $ 2.5 $ 100.7 $ 32.4 Capital expenditures (4.8) (5.9) (17.8) (17.8) Free Cash Flow $ 53.1 $ (3.4) $ 82.9 $ 14.6 2025