Q1 2025 Avanos Medical Inc Earnings Call Transcript
Key Points
- Avanos Medical Inc (AVNS) delivered strong first-quarter results with notable progress in its Pain Management and Recovery segment.
- The Specialty Nutrition Systems segment grew almost 9% organically, reaffirming its number one position in long-term, short-term, and neonatal enteral feeding.
- The company achieved $0.26 of adjusted diluted earnings per share and approximately $22 million of adjusted EBITDA.
- Avanos Medical Inc (AVNS) generated $19 million in free cash flow during the quarter, supporting its estimate of $65 million for 2025.
- The company has a strong balance sheet with $97 million of cash on hand and $107 million of debt outstanding, providing strategic flexibility.
- Avanos Medical Inc (AVNS) faces significant uncertainty regarding the impact of tariffs, with an estimated $15 million in incremental tariff-related manufacturing costs for the year.
- The company lowered its 2025 adjusted earnings per share estimate range to $0.75 to $0.95 due to tariffs and one-time executive leadership change costs.
- The Pain Management and Recovery segment had mixed results, with the surgical pain business down compared to the prior year.
- The hyaluronic acid injections and intravenous infusion product lines declined over 30% combined during the first quarter due to pricing pressures.
- The company anticipates a softer Q2 for its Specialty Nutrition Systems segment due to distributor order timing.
Good morning, ladies and gentlemen, and welcome to the Avanos Medical -- Avanos' first-quarter 2025 earnings call. (Operator Instructions) This call is being recorded on Tuesday, May 6, 2025. I would now like to turn the conference over to Scott Galovan. Please go ahead.
Good morning everyone, and thanks for joining us. It's my pleasure to welcome you to Avanos' 2025 first quarter earnings conference call. I'm pleased to start today's call by welcoming Dave Pacitti as the new Chief Executive Officer of Avanos.
Dave's extensive commercial expertise and industry knowledge have consistently driven growth and transformation throughout his career. We're excited to have Dave on board as we believe his leadership will be instrumental in advancing our strategic priorities and unlocking new opportunities for the company.
I'm also pleased to introduce Jason Pickett, who was recently appointed Interim CFO and Treasurer, with more than 30 years in corporate
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