Avanos Medical, Inc. Files 2023 Annual Report on Form 10-K

TL;DR

<b>Avanos Medical, Inc. has submitted its 2023 Form 10-K, providing a comprehensive overview of its financial standing and corporate history.</b>

AI Summary

AVANOS MEDICAL, INC. (AVNS) filed a Annual Report (10-K) with the SEC on February 21, 2024. Avanos Medical, Inc. filed its annual report for the fiscal year ending December 31, 2023. The report details the company's financial performance and business operations. The company's headquarters are located at 5405 Windward Parkway, Suite 100 South, Alpharetta, GA 30004. Avanos Medical, Inc. was formerly known as Halyard Health, Inc. before a name change on July 2, 2018. The filing includes data on common stock, additional paid-in capital, retained earnings, treasury stock, and accumulated other comprehensive income for multiple fiscal years.

Why It Matters

For investors and stakeholders tracking AVANOS MEDICAL, INC., this filing contains several important signals. This 10-K filing provides investors with crucial, up-to-date financial data and operational insights for Avanos Medical, Inc., enabling informed investment decisions. Understanding the company's historical name changes and financial structure, as detailed in the filing, is important for assessing its long-term stability and strategic evolution.

Risk Assessment

Risk Level: low — AVANOS MEDICAL, INC. shows low risk based on this filing. The risk is low as this is a standard annual report filing (10-K) which is a routine disclosure for publicly traded companies and does not inherently contain new negative information.

Analyst Insight

Review the detailed financial statements and risk factors within the 10-K to assess Avanos Medical's performance and outlook for the upcoming fiscal year.

Key Numbers

• 2023-12-31 — Fiscal Year End (Reported period)
• 2024-02-21 — Filing Date (Date of submission)
• 2018-07-02 — Date of Name Change (From Halyard Health, Inc.)
• 2014-04-24 — Date of Name Change (From Avanos Medical, Inc. (previous iteration))

Key Players & Entities

• AVANOS MEDICAL, INC. (company) — Filer name
• AVNS (company) — Ticker symbol
• 2024-02-21T00:00:00.000Z (date) — Filing date
• 2023-12-31 (date) — Fiscal year end
• 5405 Windward Parkway (address) — Business street address
• ALPHARETTA (city) — Business city
• GA (state) — Business state
• 30004 (zip) — Business zip code

FAQ

Industry Context

Avanos Medical operates in the orthopedic, prosthetic, and surgical appliances & supplies industry, providing medical devices and solutions.

Regulatory Implications

The filing is a Form 10-K, a mandatory annual report required by the U.S. Securities and Exchange Commission (SEC) for publicly traded companies.

What Investors Should Do

1. Analyze the financial statements for revenue trends, profitability, and balance sheet health.
2. Review any disclosed risk factors to understand potential challenges and their impact.
3. Compare key financial metrics to previous years to identify performance changes.

Key Dates

• 2023-12-31: Fiscal Year End — End of the reporting period for the 10-K.
• 2024-02-21: Filing Date — Date the 10-K was officially filed with the SEC.

Year-Over-Year Comparison

This filing represents the company's annual report for the fiscal year 2023, providing a comprehensive update compared to previous filings.

Key Financial Figures

• $0.01 — ection 12(b) of the Act: Common Stock—$0.01 Par Value AVNS New York Stock Exchange
• $53.0 m — acquisition of Diros for approximately $53.0 million, consisting of $2.5 million cash
• $2.5 million — roximately $53.0 million, consisting of $2.5 million cash paid upon entry into the definitiv
• $50.5 million — entry into the definitive agreement and $50.5 million in cash at closing less working capital
• $7.0 million — r adjustments, with an up to additional $7.0 million payable in contingent cash consideratio
• $130.0 million — pain portfolio. The purchase price was $130.0 million at closing less working capital adjustm
• $30.0 million — l adjustments, with up to an additional $30.0 million payable in contingent cash consideratio
• $10.6 million — owth in net sales during 2022 and 2023. $10.6 million of contingent cash consideration has be
• $125.0 m — ew incremental tranche of term loans of $125.0 million, under the Company's prior senior
• $57.5 m — ase price for the 2019 Acquisitions was $57.5 million, net of cash acquired, plus futur
• $7.2 million — red, plus future contingent payments of $7.2 million. Divestiture On June 7, 2023, we ente
• $110.0 million — closed the sale of our RH business for $110.0 million in cash, subject to certain adjustments
• $27.2 million — urred research and development costs of $27.2 million in 2023, $29.2 million in 2022 and $30.
• $29.2 million — lopment costs of $27.2 million in 2023, $29.2 million in 2022 and $30.6 million in 2021. Thes
• $30.6 million — lion in 2023, $29.2 million in 2022 and $30.6 million in 2021. These amounts consisted primar

Filing Documents

• avns-20231231.htm (10-K) — 1779KB
• avns2023form10kex191.htm (EX-19.1) — 72KB
• avns2023form10kex21.htm (EX-21) — 17KB
• avns2023form10kex23.htm (EX-23) — 4KB
• avns2023form10kex24.htm (EX-24) — 17KB
• avns2023form10kex31a.htm (EX-31.A) — 9KB
• avns2023form10kex31b.htm (EX-31.B) — 9KB
• avns2023form10kex32a.htm (EX-32.A) — 4KB
• avns2023form10kex32b.htm (EX-32.B) — 4KB
• avns2023form10kex971.htm (EX-97.1) — 40KB
• avns-20231231_g1.jpg (GRAPHIC) — 15KB
• avns-20231231_g2.jpg (GRAPHIC) — 152KB
• 0001606498-24-000018.txt (&nbsp;) — 10633KB
• avns-20231231.xsd (EX-101.SCH) — 66KB
• avns-20231231_cal.xml (EX-101.CAL) — 141KB
• avns-20231231_def.xml (EX-101.DEF) — 348KB
• avns-20231231_lab.xml (EX-101.LAB) — 872KB
• avns-20231231_pre.xml (EX-101.PRE) — 622KB
• avns-20231231_htm.xml (XML) — 1498KB

Risk Factors

Item 1A. Risk Factors 7

Unresolved Staff Comments

Item 1B. Unresolved Staff Comments 17

Cybersecurity

Item 1C. Cybersecurity 17

Properties

Item 2. Properties 19

Legal Proceedings

Item 3. Legal Proceedings 19

Mine Safety Disclosures

Item 4. Mine Safety Disclosures 19 Part II

Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities

Item 5. Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities 19

[Reserved]

Item 6. [Reserved] 20

Management's Discussion and Analysis of Financial Condition and Results of Operations

Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations 20

Quantitative and Qualitative Disclosures About Market Risk

Item 7A. Quantitative and Qualitative Disclosures About Market Risk 29

Financial Statements and Supplementary Data

Item 8. Financial Statements and Supplementary Data 31

Changes in and Disagreements with Accountants on Accounting and Financial Disclosure

Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure 64

Controls and Procedures

Item 9A. Controls and Procedures 64

Other Information

Item 9B. Other Information 66

Disclosure Regarding Foreign Jurisdictions that Prevent Inspections

Item 9C. Disclosure Regarding Foreign Jurisdictions that Prevent Inspections 66 Part III

Directors, Executive Officers and Corporate Governance

Item 10. Directors, Executive Officers and Corporate Governance 66

Executive Compensation

Item 11. Executive Compensation 67

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters

Item 12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters 67

Certain Relationships and Related Transactions, and Director Independence

Item 13. Certain Relationships and Related Transactions, and Director Independence 68

Principal Accounting Fees and Services

Item 14. Principal Accounting Fees and Services 68 Part IV

Exhibits, Financial Statement Schedules

Item 15. Exhibits, Financial Statement Schedules 69

Signatures

Signatures 72 Table of Contents PART I Information Concerning Forward-Looking Statements This Annual Report on Form 10-K (this "Form 10-K") and other materials we have filed or furnished or will file or furnish with the SEC (as well as information included in our oral or other written statements) contain, or will contain, certain "forward-looking statements," within the meaning of the Private Securities Litigation Reform Act of 1995, regarding business strategies, market potential, future financial performance and other matters. Forward-looking statements may appear throughout this Form 10-K, including without limitation, in the following sections: Item 1 "Business;" Item 1A "Risk Factors;' and Item 7 "Management's Discussion and Analysis of Financial Condition and Results of Operations." 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," "intend," "estimate," "anticipate," "plan" or "continue" and similar expressions, among others. The matters discussed in these forward-looking statements are based on the current plans and expectations of our management and are subject to certain risks and uncertainties that could cause actual results to differ materially from those projected, anticipated or implied in the forward-looking statements. These factors include, but are not limited to: general economic conditions particularly in the United States; 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; fluctuations in global equity and fixed-income markets; our ability to successfully execute on or achieve the expected benefits of our restructuring initiative; supply chain issues and inflationary pressures; a resurgence o

BUSINESS

ITEM 1. BUSINESS Overview Avanos Medical, Inc. is a medical technology company focused on delivering clinically superior medical device solutions that help patients get back to the things that matter. Headquartered in Alpharetta, Georgia, we are committed to addressing some of today's most important healthcare needs, including providing a vital lifeline for nutrition to patients from hospital to home, and reducing the use of opioids while helping patients move from surgery to recovery. We develop, manufacture and market our recognized brands globally and hold leading market positions in multiple categories across our portfolio. Unless the context indicates otherwise, the terms "Avanos," "the Company," "we," "our" and "us" refer to Avanos Medical, Inc. and its consolidated subsidiaries. We were originally incorporated in Delaware in 2014. The address of our principal executive offices is 5405 Windward Parkway, Suite 100 South, Alpharetta, Georgia 30004, and our telephone number is (844) 428-2667. We conduct our business in one operating and reportable segment that provides our medical device products to healthcare providers and patients. We have manufacturing facilities in the United States and Mexico. Within our single reportable segment, we provide a portfolio of innovative product offerings focused on Digestive Health and Pain Management and Recovery to improve patient outcomes and reduce the cost of care. Digestive Health is a portfolio of products that includes our MIC-KEY enteral feeding tubes, Corpak patient feeding solutions and NeoMed neonatal and pediatric feeding solutions. In the year ended December 31, 2023, our legacy enteral feeding tubes, which includes our MIC-KEY enteral feeding tubes, our Corpak feeding solutions and our NeoMed neonatal and pediatric feeding solutions each accounted for more than 10% of our consolidated net sales. In the year ended December 31, 2022, our legacy enteral feeding tubes and our NeoMed neonatal and pediatric feeding

View Full Filing

View this 10-K filing on SEC EDGAR