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News Buzz: Avanos Medical (NYSE: AVNS)

On Friday, Shares of Avanos Medical (NYSE: AVNS) showed the bullish trend with a higher momentum of 0.83% to $41.10. The company traded total volume of 184,646 shares as contrast to its average volume of 363.12K shares. The company has a market value of $2.01B and about 48.81M shares outstanding.

Avanos Medical, Inc. (AVNS) recently stated fourth quarter and full-year 2018 results.

Fourth Quarter 2018 Operating Results:

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Net sales totaled $170.0M, a 2 percent increase contrast to the prior year, counting Game Ready, which contributed 5 percent of the growth. Excluding Game Ready, continued strong demand in Interventional Pain and Chronic Care was offset by the expected lower volume in Acute Pain, resulting in 2 percent lower organic volume. Product mix and lower selling prices of 1 percent also influenced performance.

Operating loss was $8.0M contrast to a loss of $3.0M in 2017. On an adjusted basis, operating profit was $20.0M, contrast to $7.0M a year ago, which includes $30.0M of costs formerly allocated to the Surgical and Infection Prevention business (S&IP). Higher sales volumes and lower costs formerly allocated to S&IP, were offset by expected dis-synergies because of the S&IP divestiture and investments to fuel growth.

Adjusted EBITDA for the quarter was $22.0M, contrast to $64.0M in the prior year.

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Full-Year 2018 Operating Results from Continuing Operations:

Net sales increased 7 percent to $652.0M, contrast to 2017. Organic sales volumes increased 3 percent and Game Ready-related sales bolstered growth by 3 percent. Performance was driven by increased demand in Interventional Pain, Digestive Health and Respiratory Health, each surpassing the company’s expectations. As expected, Acute Pain’s performance for the year was affected by the industry-wide drug shortage, pre-fill disruption and the consolidation of IV Infusion customers.

Operating income was $1.0M, contrast to a loss of $43.0M in the prior year. On an adjusted basis, operating profit totaled $62.0M contrast to $5.0M in 2017, which includes costs formerly allocated to S&IP of $37.0M and $116.0M, respectively. Performance was influenced by higher sales volume and lower costs formerly allocated to S&IP, which was partially offset by expected dis-synergies related to the S&IP divestiture and increased investments to fund growth.

Year-to-date, adjusted EBITDA totaled $144.0M, contrast to $226.0M in the prior year.

Cash Flow and Balance Sheet:

Cash from operations less capital expenditures, or free cash flow, for the quarter was an outflow of $25.0M contrast to an inflow of $52.0M a year ago. For the year, free cash flow was an outflow of $195.0M, contrast to an inflow of $101.0M in the prior year. The decrease in 2018 was due mainly to lower net income and the settlement of S&IP divestiture-related net liabilities. At year-end 2018, the company’s cash balance was $385.0M, contrast to $220.0M at year-end 2017.

Total debt at the end of the fourth quarter totaled $248.0M, consisting of unsecured notes, contrast to $581.0M at year-end 2017.

Suspended Operations:

2018 net sales from suspended operations were $351.0M, contrast to $1,013.0M a year ago. Adjusted net income for 2018 was $53.0M, contrast to $122.0M in the prior year.

The Company offered net profit margin of 2.60% while its gross profit margin was 60.40%. ROE was recorded as 1.30% while beta factor was 1.35. The stock, as of recent close, has shown the weekly downbeat performance of -4.46% which was maintained at -8.24% in this year.