Avanos Medical Q1 Results, Outlook

  Avanos Medical, Inc. (NYSE: AVNS) today reported first quarter 2022 financial results.

"Coming off last year's solid finish, we maintained our momentum through the first quarter while adding OrthogenRx to our portfolio," stated Joe Woody, Avanos' chief executive officer. Woody continued, "I am very pleased with our first quarter results despite persistent global economic headwinds. We met our customers' orders and meaningfully improved our gross margins in the face of inflationary pressures and a difficult supply chain environment, and we remain confident in our ability to continue to do so through the back half of the year. Additionally, the OrthogenRx business performed as expected, confirming our belief that our acquisition strategy, combined with solid organic execution, positions us to meet our longer-term financial goals."

First Quarter 2022 Financial Highlights

• Net sales totaled $197 million, a 9 percent increase from the comparable prior year period.
• Net income for the quarter was $6 million, compared to net loss of $8 million a year ago.
• Adjusted net income totaled $12 million, compared to $11 million a year ago.
• Diluted earnings per share was $0.12, compared to $0.16 diluted loss per share a year ago.
• Adjusted diluted earnings per share was $0.26, compared to $0.23 in the prior year.

Operational and Business Highlights

• On January 20, 2022, we completed the acquisition of OrthogenRx, Inc. ("OrthogenRx"), a leader in viscosupplementation therapies for the treatment of knee osteoarthritis ("OA") knee pain. The acquisition was based on a purchase price of $130 million plus up to an additional $30 million in contingent cash consideration.
• During January, we repurchased 588,293 shares of our Common Stock for $19.3 million, completing our repurchases under a board-authorized $30 million repurchase program.
• A lead investigator on one of our clinical studies presented data at the North American Neuromodulation Society's annual meeting that provided a combined analysis of subjects across two randomized clinical studies that demonstrated remarkable consistency of COOLIEF for treating knee OA pain.
• Pre-clinical data exploring in-vivo tissue response following a COOLIEF procedure was recently published in the Journal of Pain Research.
• We are seeing significant engagement with state-level pain societies in issuing statements in support of reimbursement coverage for genicular radio-frequency pain therapies.

2022 Outlook

The company affirms previous guidance for 2022 net sales of between $830 million to $850 million, which assumes organic growth between 3 percent to 6 percent. Additionally, we anticipate gross profit margins to be between 55 percent to 57 percent with adjusted diluted earnings per share between $1.55 to $1.75.

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 inflation pressures will continue throughout the year.

https://www.biospace.com/article/releases/avanos-medical-inc-announces-first-quarter-2022-results/