We could not find any results for:
Make sure your spelling is correct or try broadening your search.
Share Name | Share Symbol | Market | Type |
---|---|---|---|
Avanos Medical Inc | NYSE:AVNS | NYSE | Common Stock |
Price Change | % Change | Share Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
---|---|---|---|---|---|---|---|---|
0.25 | 1.40% | 18.10 | 18.23 | 17.79 | 17.89 | 133,303 | 00:18:02 |
|
|
|
|
|
Delaware
|
|
|
|
46-4987888
|
||
(State or other jurisdiction of incorporation)
|
|
|
|
(I.R.S. Employer Identification No.)
|
||
|
5405 Windward Parkway
|
|
||||
|
Suite 100 South
|
|
||||
|
Alpharetta,
|
Georgia
|
30004
|
|
||
|
(Address of principal executive offices)
|
(Zip code)
|
|
|
Title of each class
|
Trading Symbol
|
Name of exchange on which registered
|
Common Stock - $0.01 Par Value
|
AVNS
|
New York Stock Exchange
|
Large accelerated filer
|
☒
|
|
Accelerated filer
|
☐
|
Non-accelerated filer
|
☐
|
|
Emerging growth company
|
☐
|
Smaller reporting company
|
☐
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
September 30, |
|
Nine Months Ended
September 30, |
||||||||||||
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
Net Sales
|
$
|
171.4
|
|
|
$
|
165.1
|
|
|
$
|
507.8
|
|
|
$
|
482.4
|
|
Cost of products sold
|
76.4
|
|
|
60.4
|
|
|
215.3
|
|
|
191.9
|
|
||||
Gross Profit
|
95.0
|
|
|
104.7
|
|
|
292.5
|
|
|
290.5
|
|
||||
Research and development
|
9.6
|
|
|
10.5
|
|
|
29.3
|
|
|
31.2
|
|
||||
Selling and general expenses
|
94.4
|
|
|
86.3
|
|
|
295.5
|
|
|
252.5
|
|
||||
Other expense (income), net
|
9.1
|
|
|
0.9
|
|
|
20.2
|
|
|
(2.0
|
)
|
||||
Operating (Loss) Income
|
(18.1
|
)
|
|
7.0
|
|
|
(52.5
|
)
|
|
8.8
|
|
||||
Interest income
|
1.3
|
|
|
2.2
|
|
|
5.7
|
|
|
5.4
|
|
||||
Interest expense
|
(3.5
|
)
|
|
(4.2
|
)
|
|
(10.7
|
)
|
|
(22.9
|
)
|
||||
(Loss) Income Before Income Taxes
|
(20.3
|
)
|
|
5.0
|
|
|
(57.5
|
)
|
|
(8.7
|
)
|
||||
Income tax benefit (provision)
|
8.8
|
|
|
(0.8
|
)
|
|
17.7
|
|
|
2.9
|
|
||||
(Loss) Income from Continuing Operations
|
(11.5
|
)
|
|
4.2
|
|
|
(39.8
|
)
|
|
(5.8
|
)
|
||||
Income from Discontinued Operations, net of tax
|
—
|
|
|
—
|
|
|
—
|
|
|
65.5
|
|
||||
Net (Loss) Income
|
$
|
(11.5
|
)
|
|
$
|
4.2
|
|
|
$
|
(39.8
|
)
|
|
$
|
59.7
|
|
|
|
|
|
|
|
|
|
||||||||
(Loss) Earnings Per Share
|
|
|
|
|
|
|
|
||||||||
Basic:
|
|
|
|
|
|
|
|
||||||||
Continuing Operations
|
$
|
(0.24
|
)
|
|
$
|
0.09
|
|
|
$
|
(0.84
|
)
|
|
$
|
(0.12
|
)
|
Discontinued Operations
|
—
|
|
|
—
|
|
|
—
|
|
|
1.39
|
|
||||
Basic (Loss) Earnings Per Share
|
$
|
(0.24
|
)
|
|
$
|
0.09
|
|
|
$
|
(0.84
|
)
|
|
$
|
1.27
|
|
|
|
|
|
|
|
|
|
||||||||
Diluted:
|
|
|
|
|
|
|
|
||||||||
Continuing Operations
|
$
|
(0.24
|
)
|
|
$
|
0.09
|
|
|
$
|
(0.84
|
)
|
|
$
|
(0.12
|
)
|
Discontinued Operations
|
—
|
|
|
—
|
|
|
—
|
|
|
1.39
|
|
||||
Diluted (Loss) Earnings Per Share
|
$
|
(0.24
|
)
|
|
$
|
0.09
|
|
|
$
|
(0.84
|
)
|
|
$
|
1.27
|
|
|
Three Months Ended
September 30, |
|
Nine Months Ended
September 30, |
||||||||||||
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
Net (Loss) Income
|
$
|
(11.5
|
)
|
|
$
|
4.2
|
|
|
$
|
(39.8
|
)
|
|
$
|
59.7
|
|
Other Comprehensive (Loss) Income, net of tax
|
|
|
|
|
|
|
|
||||||||
Unrealized currency translation adjustments
|
(3.7
|
)
|
|
1.6
|
|
|
(1.1
|
)
|
|
0.9
|
|
||||
Defined benefit plans
|
—
|
|
|
—
|
|
|
—
|
|
|
0.7
|
|
||||
Cash flow hedges
|
—
|
|
|
—
|
|
|
—
|
|
|
(0.8
|
)
|
||||
Total Other Comprehensive (Loss) Income, net of tax
|
(3.7
|
)
|
|
1.6
|
|
|
(1.1
|
)
|
|
0.8
|
|
||||
Comprehensive (Loss) Income
|
$
|
(15.2
|
)
|
|
$
|
5.8
|
|
|
$
|
(40.9
|
)
|
|
$
|
60.5
|
|
|
September 30,
2019 |
|
December 31,
2018 |
||||
ASSETS
|
|
|
|
||||
Current Assets
|
|
|
|
||||
Cash and cash equivalents
|
$
|
214.4
|
|
|
$
|
384.5
|
|
Accounts receivable, net of allowances
|
157.7
|
|
|
150.5
|
|
||
Inventories
|
144.5
|
|
|
121.4
|
|
||
Prepaid expenses and other current assets
|
29.9
|
|
|
57.2
|
|
||
Total Current Assets
|
546.5
|
|
|
713.6
|
|
||
Property, Plant and Equipment, net
|
182.1
|
|
|
154.1
|
|
||
Operating Lease Right-of-Use Assets
|
64.0
|
|
|
—
|
|
||
Goodwill
|
800.5
|
|
|
783.6
|
|
||
Other Intangible Assets, net
|
189.5
|
|
|
168.2
|
|
||
Deferred Tax Assets
|
12.3
|
|
|
6.3
|
|
||
Other Assets
|
12.8
|
|
|
7.6
|
|
||
TOTAL ASSETS
|
$
|
1,807.7
|
|
|
$
|
1,833.4
|
|
|
|
|
|
||||
LIABILITIES AND STOCKHOLDERS’ EQUITY
|
|
|
|
||||
Current Liabilities
|
|
|
|
||||
Current portion of operating lease liabilities
|
$
|
14.5
|
|
|
$
|
—
|
|
Trade accounts payable
|
94.7
|
|
|
169.9
|
|
||
Accrued expenses
|
108.9
|
|
|
94.4
|
|
||
Total Current Liabilities
|
218.1
|
|
|
264.3
|
|
||
Long-Term Debt
|
247.9
|
|
|
247.7
|
|
||
Operating Lease Liabilities
|
62.5
|
|
|
—
|
|
||
Deferred Tax Liabilities
|
0.5
|
|
|
4.4
|
|
||
Other Long-Term Liabilities
|
11.8
|
|
|
19.8
|
|
||
Total Liabilities
|
540.8
|
|
|
536.2
|
|
||
|
|
|
|
||||
Commitments and Contingencies
|
|
|
|
||||
|
|
|
|
||||
Stockholders’ Equity
|
|
|
|
||||
Preferred stock - $0.01 par value - authorized 20,000,000 shares, none issued
|
—
|
|
|
—
|
|
||
Common stock - $0.01 par value - authorized 300,000,000 shares, 47,719,954 outstanding as of September 30, 2019 and 47,444,340 outstanding as of December 31, 2018
|
0.5
|
|
|
0.5
|
|
||
Additional paid-in capital
|
1,592.1
|
|
|
1,578.1
|
|
||
Accumulated deficit
|
(282.2
|
)
|
|
(242.4
|
)
|
||
Treasury stock
|
(8.7
|
)
|
|
(5.3
|
)
|
||
Accumulated other comprehensive loss
|
(34.8
|
)
|
|
(33.7
|
)
|
||
Total Stockholders’ Equity
|
1,266.9
|
|
|
1,297.2
|
|
||
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY
|
$
|
1,807.7
|
|
|
$
|
1,833.4
|
|
|
Three Months Ended
September 30, |
|
Nine Months Ended
September 30, |
||||||||||||
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
Common Stock
|
$
|
0.5
|
|
|
$
|
0.5
|
|
|
$
|
0.5
|
|
|
$
|
0.5
|
|
Additional Paid-in Capital, beginning of period
|
1,586.8
|
|
|
1,567.7
|
|
|
1,578.1
|
|
|
1,550.5
|
|
||||
Exercise or redemption of share-based awards
|
2.5
|
|
|
5.4
|
|
|
5.2
|
|
|
17.0
|
|
||||
Stock-based compensation expense
|
2.8
|
|
|
2.4
|
|
|
8.8
|
|
|
8.0
|
|
||||
Additional Paid-in Capital, end of period
|
1,592.1
|
|
|
1,575.5
|
|
|
1,592.1
|
|
|
1,575.5
|
|
||||
Accumulated Deficit, beginning of period
|
(270.7
|
)
|
|
(244.4
|
)
|
|
(242.4
|
)
|
|
(299.9
|
)
|
||||
Net (loss) income
|
(11.5
|
)
|
|
4.2
|
|
|
(39.8
|
)
|
|
59.7
|
|
||||
Accumulated Deficit, end of period
|
(282.2
|
)
|
|
(240.2
|
)
|
|
(282.2
|
)
|
|
(240.2
|
)
|
||||
Treasury Stock, beginning of period
|
(8.6
|
)
|
|
(5.1
|
)
|
|
(5.3
|
)
|
|
(4.4
|
)
|
||||
Purchases of treasury stock
|
(0.1
|
)
|
|
—
|
|
|
(3.4
|
)
|
|
(0.7
|
)
|
||||
Treasury Stock, end of period
|
(8.7
|
)
|
|
(5.1
|
)
|
|
(8.7
|
)
|
|
(5.1
|
)
|
||||
Accumulated Other Comprehensive Loss, beginning of period
|
(31.1
|
)
|
|
(32.1
|
)
|
|
(33.7
|
)
|
|
(31.3
|
)
|
||||
Other comprehensive (loss) income, net of tax
|
(3.7
|
)
|
|
1.6
|
|
|
(1.1
|
)
|
|
0.8
|
|
||||
Accumulated Other Comprehensive Loss, end of period
|
(34.8
|
)
|
|
(30.5
|
)
|
|
(34.8
|
)
|
|
(30.5
|
)
|
||||
Total Stockholders’ Equity, end of period
|
$
|
1,266.9
|
|
|
$
|
1,300.2
|
|
|
$
|
1,266.9
|
|
|
$
|
1,300.2
|
|
|
Nine Months Ended
September 30, |
||||||
|
2019
|
|
2018
|
||||
Operating Activities
|
|
|
|
||||
Net (loss) income
|
$
|
(39.8
|
)
|
|
$
|
59.7
|
|
Depreciation and amortization
|
25.6
|
|
|
24.5
|
|
||
Stock-based compensation expense
|
8.8
|
|
|
8.0
|
|
||
Net non-cash gain on Divestiture
|
—
|
|
|
(98.4
|
)
|
||
Net loss on asset dispositions
|
0.5
|
|
|
1.3
|
|
||
Changes in operating assets and liabilities, net of acquisition:
|
|
|
|
||||
Accounts receivable
|
7.9
|
|
|
57.3
|
|
||
Inventories
|
(20.2
|
)
|
|
(34.3
|
)
|
||
Prepaid expenses and other assets
|
28.9
|
|
|
(36.9
|
)
|
||
Accounts payable
|
(72.1
|
)
|
|
(71.5
|
)
|
||
Accrued expenses
|
(9.6
|
)
|
|
(37.9
|
)
|
||
Other
|
(1.6
|
)
|
|
(10.0
|
)
|
||
Cash Used in Operating Activities
|
(71.6
|
)
|
|
(138.2
|
)
|
||
Investing Activities
|
|
|
|
||||
Capital expenditures
|
(42.5
|
)
|
|
(31.4
|
)
|
||
Acquisition of assets and businesses, net of cash acquired
|
(57.5
|
)
|
|
(65.6
|
)
|
||
Proceeds from the Divestiture
|
—
|
|
|
754.3
|
|
||
Cash (Used in) Provided by Investing Activities
|
(100.0
|
)
|
|
657.3
|
|
||
Financing Activities
|
|
|
|
||||
Debt repayments
|
(0.2
|
)
|
|
(339.0
|
)
|
||
Purchases of treasury stock
|
(3.4
|
)
|
|
(0.6
|
)
|
||
Proceeds from the exercise of stock options
|
5.2
|
|
|
16.8
|
|
||
Cash Provided by (Used in) Financing Activities
|
1.6
|
|
|
(322.8
|
)
|
||
Effect of Exchange Rate Changes on Cash and Cash Equivalents
|
(0.1
|
)
|
|
(4.2
|
)
|
||
(Decrease) Increase in Cash and Cash Equivalents
|
(170.1
|
)
|
|
192.1
|
|
||
Cash and Cash Equivalents - Beginning of Period
|
384.5
|
|
|
219.7
|
|
||
Cash and Cash Equivalents - End of Period
|
$
|
214.4
|
|
|
$
|
411.8
|
|
|
EndoClear(a)
|
|
Summit(a)
|
|
NeoMed(a)
|
|
Game Ready(b)
|
||||||||
Current assets acquired net of liabilities assumed
|
$
|
0.5
|
|
|
$
|
0.5
|
|
|
$
|
11.2
|
|
|
$
|
8.8
|
|
Property, plant and equipment
|
—
|
|
|
0.1
|
|
|
2.0
|
|
|
1.0
|
|
||||
Identifiable intangible assets
|
4.0
|
|
|
16.3
|
|
|
16.1
|
|
|
40.0
|
|
||||
Other noncurrent assets (liabilities), net
|
—
|
|
|
—
|
|
|
0.3
|
|
|
(0.3
|
)
|
||||
Deferred tax liabilities
|
—
|
|
|
—
|
|
|
(3.0
|
)
|
|
(0.2
|
)
|
||||
Goodwill
|
4.5
|
|
|
0.4
|
|
|
13.9
|
|
|
18.7
|
|
||||
Total
|
$
|
9.0
|
|
|
$
|
17.3
|
|
|
$
|
40.5
|
|
|
$
|
68.0
|
|
(a)
|
The EndoClear, Summit and NeoMed transactions closed during the third quarter of 2019. Accordingly, the purchase price allocations in the table above are preliminary.
|
(b)
|
Game Ready was acquired on July 1, 2018 and the purchase price allocation was finalized on June 30, 2019.
|
|
Three Months Ended
September 30, |
|
Nine Months Ended
September 30, |
||||||||||||
|
2019
(unaudited) |
|
2018
(unaudited) |
|
2019
(unaudited) |
|
2018
(unaudited) |
||||||||
Net Sales
|
$
|
172.2
|
|
|
$
|
178.0
|
|
|
$
|
544.3
|
|
|
$
|
535.2
|
|
|
|
|
|
|
|
|
|
||||||||
Net Income
|
$
|
(21.2
|
)
|
|
$
|
5.7
|
|
|
$
|
(50.2
|
)
|
|
$
|
58.1
|
|
|
|
|
|
|
|
|
|
||||||||
Earnings per share:
|
|
|
|
|
|
|
|
||||||||
Basic
|
$
|
(0.45
|
)
|
|
$
|
0.12
|
|
|
$
|
(1.05
|
)
|
|
$
|
1.23
|
|
Diluted
|
$
|
(0.45
|
)
|
|
$
|
0.12
|
|
|
$
|
(1.05
|
)
|
|
$
|
1.22
|
|
|
Accrual
|
||
Balance, December 31, 2018
|
$
|
5.7
|
|
Charges and adjustments, net
|
6.8
|
|
|
Payments
|
(6.4
|
)
|
|
Balance, September 30, 2019
|
$
|
6.1
|
|
|
Three Months
Ended September 30, 2018 |
|
Nine Months
Ended September 30, 2018 |
||||
Net Sales
|
$
|
—
|
|
|
$
|
353.0
|
|
Cost of products sold
|
—
|
|
|
260.3
|
|
||
Research and development
|
—
|
|
|
1.1
|
|
||
Selling, general and other expenses
|
—
|
|
|
38.1
|
|
||
Gain on Divestiture
|
—
|
|
|
(89.9
|
)
|
||
Other expense, net
|
—
|
|
|
0.4
|
|
||
Income from Discontinued Operations before income taxes
|
—
|
|
|
143.0
|
|
||
Tax provision from discontinued operations
|
—
|
|
|
(77.5
|
)
|
||
Income from Discontinued Operations, net of tax
|
$
|
—
|
|
|
$
|
65.5
|
|
|
Nine Months
Ended September 30, 2018 |
||
Operating Activities: Stock-based compensation expense
|
$
|
(1.5
|
)
|
Investing Activities: Capital expenditures
|
2.9
|
|
|
September 30, 2019
|
|
December 31, 2018
|
||||
Accounts receivable
|
$
|
160.5
|
|
|
$
|
152.2
|
|
Allowances and doubtful accounts:
|
|
|
|
||||
Doubtful accounts
|
(2.5
|
)
|
|
(1.4
|
)
|
||
Sales discounts
|
(0.3
|
)
|
|
(0.2
|
)
|
||
Sales returns
|
—
|
|
|
(0.1
|
)
|
||
Accounts receivable, net
|
$
|
157.7
|
|
|
$
|
150.5
|
|
|
September 30, 2019
|
|
December 31, 2018
|
||||||||||||||||||||
|
LIFO
|
|
Non-
LIFO |
|
Total
|
|
LIFO
|
|
Non-
LIFO |
|
Total
|
||||||||||||
Raw materials
|
$
|
42.6
|
|
|
$
|
2.8
|
|
|
$
|
45.4
|
|
|
$
|
39.6
|
|
|
$
|
1.5
|
|
|
$
|
41.1
|
|
Work in process
|
31.8
|
|
|
0.4
|
|
|
32.2
|
|
|
22.1
|
|
|
0.4
|
|
|
22.5
|
|
||||||
Finished goods
|
55.2
|
|
|
18.3
|
|
|
73.5
|
|
|
50.1
|
|
|
13.7
|
|
|
63.8
|
|
||||||
Supplies and other
|
—
|
|
|
4.3
|
|
|
4.3
|
|
|
—
|
|
|
5.8
|
|
|
5.8
|
|
||||||
|
129.6
|
|
|
25.8
|
|
|
155.4
|
|
|
111.8
|
|
|
21.4
|
|
|
133.2
|
|
||||||
Excess of FIFO or weighted-average cost over LIFO cost
|
(10.9
|
)
|
|
—
|
|
|
(10.9
|
)
|
|
(11.8
|
)
|
|
—
|
|
|
(11.8
|
)
|
||||||
Total
|
$
|
118.7
|
|
|
$
|
25.8
|
|
|
$
|
144.5
|
|
|
$
|
100.0
|
|
|
$
|
21.4
|
|
|
$
|
121.4
|
|
|
September 30, 2019
|
|
December 31, 2018
|
||||
Land
|
$
|
0.9
|
|
|
$
|
0.9
|
|
Buildings
|
46.6
|
|
|
43.5
|
|
||
Machinery and equipment
|
150.3
|
|
|
141.2
|
|
||
Construction in progress
|
77.6
|
|
|
52.7
|
|
||
|
275.4
|
|
|
238.3
|
|
||
Less accumulated depreciation
|
(93.3
|
)
|
|
(84.2
|
)
|
||
Total
|
$
|
182.1
|
|
|
$
|
154.1
|
|
|
Goodwill
|
||
Balance, December 31, 2018
|
$
|
783.6
|
|
Goodwill acquired(a)
|
18.8
|
|
|
Purchase accounting adjustment
|
(1.9
|
)
|
|
Currency translation adjustment
|
—
|
|
|
Balance, September 30, 2019
|
$
|
800.5
|
|
|
September 30, 2019
|
|
December 31, 2018
|
||||||||||||||||||||
|
Gross
Carrying Amount |
|
Accumulated
Amortization |
|
Net Carrying Amount
|
|
Gross
Carrying Amount |
|
Accumulated
Amortization |
|
Net Carrying Amount
|
||||||||||||
Trademarks
|
$
|
83.5
|
|
|
$
|
(55.6
|
)
|
|
$
|
27.9
|
|
|
$
|
83.1
|
|
|
$
|
(52.2
|
)
|
|
$
|
30.9
|
|
Patents and acquired technologies
|
260.8
|
|
|
(153.7
|
)
|
|
107.1
|
|
|
259.5
|
|
|
(144.4
|
)
|
|
115.1
|
|
||||||
Other
|
88.8
|
|
|
(34.3
|
)
|
|
54.5
|
|
|
54.4
|
|
|
(32.2
|
)
|
|
22.2
|
|
||||||
Total
|
$
|
433.1
|
|
|
$
|
(243.6
|
)
|
|
$
|
189.5
|
|
|
$
|
397.0
|
|
|
$
|
(228.8
|
)
|
|
$
|
168.2
|
|
For the years ending December 31,
|
|
Amount
|
||
2019
|
|
$
|
5.4
|
|
2020
|
|
18.5
|
|
|
2021
|
|
17.0
|
|
|
2022
|
|
15.9
|
|
|
2023
|
|
15.3
|
|
|
Thereafter
|
|
117.4
|
|
|
Total
|
|
$
|
189.5
|
|
|
September 30, 2019
|
|
December 31, 2018
|
||||
Accrued rebates
|
$
|
40.3
|
|
|
$
|
26.1
|
|
Accrued salaries and wages
|
23.7
|
|
|
27.0
|
|
||
Accrued taxes
|
3.8
|
|
|
6.5
|
|
||
Other
|
41.1
|
|
|
34.8
|
|
||
Total
|
$
|
108.9
|
|
|
$
|
94.4
|
|
|
September 30, 2019
|
|
December 31, 2018
|
||||
Taxes payable
|
$
|
0.4
|
|
|
$
|
0.4
|
|
Accrued compensation benefits
|
6.1
|
|
|
4.3
|
|
||
Other
|
5.3
|
|
|
15.1
|
|
||
Total
|
$
|
11.8
|
|
|
$
|
19.8
|
|
|
As of
September 30, 2019 |
||
Assets
|
|
||
Operating lease right-of-use assets
|
$
|
64.0
|
|
|
|
||
Liabilities
|
|
||
Current portion of operating lease liabilities
|
14.5
|
|
|
Operating lease liabilities
|
62.5
|
|
|
Total Operating Lease Liabilities
|
$
|
77.0
|
|
|
|
||
Weighted average remaining lease term
|
7.4 years
|
|
|
Weighted average discount rate
|
4.6
|
%
|
|
Three Months ended
September 30, 2019 |
|
Nine Months Ended
September 30, 2019 |
||||
Operating lease cost
|
$
|
3.4
|
|
|
$
|
9.3
|
|
Short-term lease cost
|
0.4
|
|
|
1.5
|
|
||
Variable lease cost
|
0.6
|
|
|
1.4
|
|
||
Total lease cost
|
$
|
4.4
|
|
|
$
|
12.2
|
|
|
|
|
|
||||
Cash paid for amounts included in the measurement of lease liabilities
|
$
|
4.0
|
|
|
$
|
13.0
|
|
Right-of-use assets obtained in exchange for new operating lease liabilities
|
$
|
—
|
|
|
$
|
21.2
|
|
For the years ending
December 31,
|
|
Amount
|
||
2019
|
|
$
|
4.3
|
|
2020
|
|
14.9
|
|
|
2021
|
|
14.1
|
|
|
2022
|
|
13.7
|
|
|
2023
|
|
11.5
|
|
|
Thereafter
|
|
34.7
|
|
|
Future minimum obligations
|
|
$
|
93.2
|
|
|
|
|
September 30, 2019
|
|
December 31, 2018
|
||||||||||||
|
Fair Value
Hierarchy
Level
|
|
Carrying
Amount
|
|
Estimated
Fair
Value
|
|
Carrying
Amount
|
|
Estimated
Fair
Value
|
||||||||
Assets
|
|
|
|
|
|
|
|
|
|
||||||||
Cash and cash equivalents
|
1
|
|
$
|
214.4
|
|
|
$
|
214.4
|
|
|
$
|
384.5
|
|
|
$
|
384.5
|
|
Liabilities
|
|
|
|
|
|
|
|
|
|
||||||||
Senior Unsecured Notes
|
1
|
|
247.9
|
|
|
254.4
|
|
|
247.7
|
|
|
250.9
|
|
|
Weighted-Average Interest Rate
|
|
Maturities
|
|
September 30, 2019
|
|
December 31, 2018
|
|||||
Senior Unsecured Notes
|
6.25
|
%
|
|
2022
|
|
$
|
249.8
|
|
|
$
|
250.0
|
|
Unamortized Debt Discounts and Issuance Costs
|
|
|
|
|
(1.9
|
)
|
|
(2.3
|
)
|
|||
Total Debt, net
|
|
|
|
|
$
|
247.9
|
|
|
$
|
247.7
|
|
|
Unrealized
Translation
|
|
Cash Flow
Hedges
|
|
Defined Benefit
Pension Plans
|
|
Accumulated
Other
Comprehensive (Loss) Income
|
||||||||
Balance, December 31, 2018
|
$
|
(34.3
|
)
|
|
$
|
0.1
|
|
|
$
|
0.5
|
|
|
$
|
(33.7
|
)
|
Other comprehensive income
|
(1.1
|
)
|
|
—
|
|
|
—
|
|
|
(1.1
|
)
|
||||
Balance, September 30, 2019
|
$
|
(35.4
|
)
|
|
$
|
0.1
|
|
|
$
|
0.5
|
|
|
$
|
(34.8
|
)
|
|
Three Months Ended
September 30, |
|
Nine Months Ended
September 30, |
||||||||||||
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
Unrealized translation
|
$
|
(3.7
|
)
|
|
$
|
1.6
|
|
|
$
|
(1.1
|
)
|
|
$
|
0.9
|
|
Defined benefit pension plans
|
—
|
|
|
—
|
|
|
—
|
|
|
0.9
|
|
||||
Tax effect
|
—
|
|
|
—
|
|
|
—
|
|
|
(0.2
|
)
|
||||
Defined benefit pension plans, net of tax
|
—
|
|
|
—
|
|
|
—
|
|
|
0.7
|
|
||||
Cash flow hedges
|
—
|
|
|
—
|
|
|
—
|
|
|
(1.0
|
)
|
||||
Tax effect
|
—
|
|
|
—
|
|
|
—
|
|
|
0.2
|
|
||||
Cash flow hedges, net of tax
|
—
|
|
|
—
|
|
|
—
|
|
|
(0.8
|
)
|
||||
Change in AOCI
|
$
|
(3.7
|
)
|
|
$
|
1.6
|
|
|
$
|
(1.1
|
)
|
|
$
|
0.8
|
|
|
Three Months Ended
September 30, |
|
Nine Months Ended
September 30, |
||||||||||||
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
(Loss) Income from continuing operations
|
$
|
(11.5
|
)
|
|
$
|
4.2
|
|
|
(39.8
|
)
|
|
(5.8
|
)
|
||
Income from discontinued operations, net of tax
|
—
|
|
|
—
|
|
|
—
|
|
|
65.5
|
|
||||
Net (Loss) Income
|
$
|
(11.5
|
)
|
|
$
|
4.2
|
|
|
(39.8
|
)
|
|
59.7
|
|
||
|
|
|
|
|
|
|
|
||||||||
Weighted Average Shares Outstanding:
|
|
|
|
|
|
|
|
||||||||
Basic weighted average shares outstanding
|
47.7
|
|
|
47.3
|
|
|
47.6
|
|
|
47.1
|
|
||||
Dilutive effect of stock options and restricted share unit awards
|
—
|
|
|
1.3
|
|
|
—
|
|
|
—
|
|
||||
Diluted weighted average shares outstanding
|
47.7
|
|
|
48.6
|
|
|
47.6
|
|
|
47.1
|
|
||||
(Loss) Earnings Per Share:
|
|
|
|
|
|
|
|
||||||||
Basic:
|
|
|
|
|
|
|
|
||||||||
Continuing operations
|
$
|
(0.24
|
)
|
|
$
|
0.09
|
|
|
$
|
(0.84
|
)
|
|
$
|
(0.12
|
)
|
Discontinued operations
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
1.39
|
|
Basic (Loss) Earnings Per Share
|
$
|
(0.24
|
)
|
|
$
|
0.09
|
|
|
$
|
(0.84
|
)
|
|
$
|
1.27
|
|
|
|
|
|
|
|
|
|
||||||||
Diluted:
|
|
|
|
|
|
|
|
||||||||
Continuing operations
|
$
|
(0.24
|
)
|
|
$
|
0.09
|
|
|
$
|
(0.84
|
)
|
|
$
|
(0.12
|
)
|
Discontinued operations
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
1.39
|
|
Diluted (Loss) Earnings Per Share
|
$
|
(0.24
|
)
|
|
$
|
0.09
|
|
|
$
|
(0.84
|
)
|
|
$
|
1.27
|
|
|
Three Months Ended
September 30, |
|
Nine Months Ended
September 30, |
||||||||||||
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
Chronic care
|
$
|
98.0
|
|
|
$
|
93.6
|
|
|
$
|
300.3
|
|
|
$
|
287.8
|
|
Pain management
|
73.4
|
|
|
71.5
|
|
|
207.5
|
|
|
194.6
|
|
||||
Total Net Sales
|
$
|
171.4
|
|
|
$
|
165.1
|
|
|
$
|
507.8
|
|
|
$
|
482.4
|
|
|
Three Months Ended September 30, 2019
|
||||||||||||||||||
|
Parent
|
|
Guarantor
Subsidiaries
|
|
Non-Guarantor
Subsidiaries
|
|
Eliminations
|
|
Consolidated
|
||||||||||
Net Sales
|
$
|
—
|
|
|
$
|
161.4
|
|
|
$
|
36.6
|
|
|
$
|
(26.6
|
)
|
|
$
|
171.4
|
|
Cost of products sold
|
—
|
|
|
74.9
|
|
|
28.1
|
|
|
(26.6
|
)
|
|
76.4
|
|
|||||
Gross Profit
|
—
|
|
|
86.5
|
|
|
8.5
|
|
|
—
|
|
|
95.0
|
|
|||||
Research and development
|
—
|
|
|
9.6
|
|
|
—
|
|
|
—
|
|
|
9.6
|
|
|||||
Selling and general expenses
|
10.3
|
|
|
73.4
|
|
|
10.7
|
|
|
—
|
|
|
94.4
|
|
|||||
Other expense (income), net
|
0.4
|
|
|
9.7
|
|
|
(1.0
|
)
|
|
—
|
|
|
9.1
|
|
|||||
Operating Loss
|
(10.7
|
)
|
|
(6.2
|
)
|
|
(1.2
|
)
|
|
—
|
|
|
(18.1
|
)
|
|||||
Interest income
|
0.9
|
|
|
—
|
|
|
1.1
|
|
|
(0.7
|
)
|
|
1.3
|
|
|||||
Interest expense
|
(4.4
|
)
|
|
0.3
|
|
|
(0.1
|
)
|
|
0.7
|
|
|
(3.5
|
)
|
|||||
Loss Before Income Taxes
|
(14.2
|
)
|
|
(5.9
|
)
|
|
(0.2
|
)
|
|
—
|
|
|
(20.3
|
)
|
|||||
Income tax benefit
|
3.5
|
|
|
5.0
|
|
|
0.3
|
|
|
—
|
|
|
8.8
|
|
|||||
Equity in earnings of consolidated subsidiaries
|
(0.8
|
)
|
|
1.6
|
|
|
—
|
|
|
(0.8
|
)
|
|
—
|
|
|||||
Net (Loss) Income
|
(11.5
|
)
|
|
0.7
|
|
|
0.1
|
|
|
(0.8
|
)
|
|
(11.5
|
)
|
|||||
Total other comprehensive loss, net of tax
|
(3.7
|
)
|
|
(1.0
|
)
|
|
(3.8
|
)
|
|
4.8
|
|
|
(3.7
|
)
|
|||||
Comprehensive Loss
|
$
|
(15.2
|
)
|
|
$
|
(0.3
|
)
|
|
$
|
(3.7
|
)
|
|
$
|
4.0
|
|
|
$
|
(15.2
|
)
|
|
Three Months Ended September 30, 2018
|
||||||||||||||||||
|
Parent
|
|
Guarantor
Subsidiaries
|
|
Non-Guarantor
Subsidiaries
|
|
Eliminations
|
|
Consolidated
|
||||||||||
Net Sales
|
$
|
—
|
|
|
$
|
170.9
|
|
|
$
|
13.4
|
|
|
$
|
(19.2
|
)
|
|
$
|
165.1
|
|
Cost of products sold
|
—
|
|
|
73.7
|
|
|
5.8
|
|
|
(19.1
|
)
|
|
60.4
|
|
|||||
Gross Profit
|
—
|
|
|
97.2
|
|
|
7.6
|
|
|
(0.1
|
)
|
|
104.7
|
|
|||||
Research and development
|
—
|
|
|
10.5
|
|
|
—
|
|
|
—
|
|
|
10.5
|
|
|||||
Selling and general expenses
|
11.4
|
|
|
65.3
|
|
|
9.6
|
|
|
—
|
|
|
86.3
|
|
|||||
Other expense (income), net
|
1.0
|
|
|
1.4
|
|
|
(1.7
|
)
|
|
0.2
|
|
|
0.9
|
|
|||||
Operating (Loss) Income
|
(12.4
|
)
|
|
20.0
|
|
|
(0.3
|
)
|
|
(0.3
|
)
|
|
7.0
|
|
|||||
Interest income
|
0.7
|
|
|
—
|
|
|
2.5
|
|
|
(1.0
|
)
|
|
2.2
|
|
|||||
Interest expense
|
(4.3
|
)
|
|
(0.8
|
)
|
|
(0.1
|
)
|
|
1.0
|
|
|
(4.2
|
)
|
|||||
(Loss) Income Before Income Taxes
|
(16.0
|
)
|
|
19.2
|
|
|
2.1
|
|
|
(0.3
|
)
|
|
5.0
|
|
|||||
Income tax benefit (provision)
|
4.1
|
|
|
(0.1
|
)
|
|
(4.8
|
)
|
|
—
|
|
|
(0.8
|
)
|
|||||
Equity in earnings of consolidated subsidiaries
|
16.2
|
|
|
2.5
|
|
|
—
|
|
|
(18.7
|
)
|
|
—
|
|
|||||
Net Income (Loss)
|
4.3
|
|
|
21.6
|
|
|
(2.7
|
)
|
|
(19.0
|
)
|
|
4.2
|
|
|||||
Total other comprehensive income, net of tax
|
1.6
|
|
|
2.7
|
|
|
2.1
|
|
|
(4.8
|
)
|
|
1.6
|
|
|||||
Comprehensive Income (Loss)
|
$
|
5.9
|
|
|
$
|
24.3
|
|
|
$
|
(0.6
|
)
|
|
$
|
(23.8
|
)
|
|
$
|
5.8
|
|
|
Nine Months Ended September 30, 2019
|
||||||||||||||||||
|
Parent
|
|
Guarantor
Subsidiaries
|
|
Non-Guarantor
Subsidiaries
|
|
Eliminations
|
|
Consolidated
|
||||||||||
Net Sales
|
$
|
—
|
|
|
$
|
477.9
|
|
|
$
|
96.4
|
|
|
$
|
(66.5
|
)
|
|
$
|
507.8
|
|
Cost of products sold
|
—
|
|
|
209.4
|
|
|
72.4
|
|
|
(66.5
|
)
|
|
215.3
|
|
|||||
Gross Profit
|
—
|
|
|
268.5
|
|
|
24.0
|
|
|
—
|
|
|
292.5
|
|
|||||
Research & development
|
—
|
|
|
29.3
|
|
|
—
|
|
|
—
|
|
|
29.3
|
|
|||||
Selling and general expenses
|
25.6
|
|
|
239.5
|
|
|
30.4
|
|
|
—
|
|
|
295.5
|
|
|||||
Other expense (income), net
|
0.4
|
|
|
26.4
|
|
|
(6.6
|
)
|
|
—
|
|
|
20.2
|
|
|||||
Operating (Loss) Income
|
(26.0
|
)
|
|
(26.7
|
)
|
|
0.2
|
|
|
—
|
|
|
(52.5
|
)
|
|||||
Interest income
|
4.2
|
|
|
0.1
|
|
|
4.0
|
|
|
(2.6
|
)
|
|
5.7
|
|
|||||
Interest expense
|
(13.0
|
)
|
|
(0.1
|
)
|
|
(0.2
|
)
|
|
2.6
|
|
|
(10.7
|
)
|
|||||
(Loss) Income Before Income Taxes
|
(34.8
|
)
|
|
(26.7
|
)
|
|
4.0
|
|
|
—
|
|
|
(57.5
|
)
|
|||||
Income tax benefit (provision)
|
8.5
|
|
|
10.1
|
|
|
(0.9
|
)
|
|
—
|
|
|
17.7
|
|
|||||
Equity in earnings of consolidated subsidiaries
|
(13.5
|
)
|
|
6.3
|
|
|
—
|
|
|
7.2
|
|
|
—
|
|
|||||
Net (Loss) Income
|
(39.8
|
)
|
|
(10.3
|
)
|
|
3.1
|
|
|
7.2
|
|
|
(39.8
|
)
|
|||||
Total other comprehensive (loss) income, net of tax
|
(1.1
|
)
|
|
1.4
|
|
|
(1.9
|
)
|
|
0.5
|
|
|
(1.1
|
)
|
|||||
Comprehensive (Loss) Income
|
$
|
(40.9
|
)
|
|
$
|
(8.9
|
)
|
|
$
|
1.2
|
|
|
$
|
7.7
|
|
|
$
|
(40.9
|
)
|
|
Nine Months Ended September 30, 2018
|
||||||||||||||||||
|
Parent
|
|
Guarantor
Subsidiaries
|
|
Non-Guarantor
Subsidiaries
|
|
Eliminations
|
|
Consolidated
|
||||||||||
Net Sales
|
$
|
—
|
|
|
$
|
513.9
|
|
|
$
|
125.4
|
|
|
$
|
(156.9
|
)
|
|
$
|
482.4
|
|
Cost of products sold
|
(0.8
|
)
|
|
247.6
|
|
|
101.9
|
|
|
(156.8
|
)
|
|
191.9
|
|
|||||
Gross Profit
|
0.8
|
|
|
266.3
|
|
|
23.5
|
|
|
(0.1
|
)
|
|
290.5
|
|
|||||
Research and development
|
—
|
|
|
31.2
|
|
|
—
|
|
|
—
|
|
|
31.2
|
|
|||||
Selling and general expenses
|
32.0
|
|
|
187.3
|
|
|
33.2
|
|
|
—
|
|
|
252.5
|
|
|||||
Other (income) expense, net
|
(1.2
|
)
|
|
2.7
|
|
|
(7.6
|
)
|
|
4.1
|
|
|
(2.0
|
)
|
|||||
Operating (Loss) Income
|
(30.0
|
)
|
|
45.1
|
|
|
(2.1
|
)
|
|
(4.2
|
)
|
|
8.8
|
|
|||||
Interest income
|
2.5
|
|
|
0.1
|
|
|
5.7
|
|
|
(2.9
|
)
|
|
5.4
|
|
|||||
Interest expense
|
(23.2
|
)
|
|
(2.4
|
)
|
|
(0.2
|
)
|
|
2.9
|
|
|
(22.9
|
)
|
|||||
(Loss) Income before Income Taxes
|
(50.7
|
)
|
|
42.8
|
|
|
3.4
|
|
|
(4.2
|
)
|
|
(8.7
|
)
|
|||||
Income tax benefit (provision)
|
12.9
|
|
|
(1.3
|
)
|
|
(8.7
|
)
|
|
—
|
|
|
2.9
|
|
|||||
Equity in earnings of consolidated subsidiaries
|
104.0
|
|
|
143.1
|
|
|
—
|
|
|
(247.1
|
)
|
|
—
|
|
|||||
Net Income (Loss) from Continuing Operations
|
66.2
|
|
|
184.6
|
|
|
(5.3
|
)
|
|
(251.3
|
)
|
|
(5.8
|
)
|
|||||
(Loss) Income from discontinued operations, net of tax
|
(6.5
|
)
|
|
(49.9
|
)
|
|
121.9
|
|
|
—
|
|
|
65.5
|
|
|||||
Net Income
|
59.7
|
|
|
134.7
|
|
|
116.6
|
|
|
(251.3
|
)
|
|
59.7
|
|
|||||
Total other comprehensive income, net of tax
|
0.8
|
|
|
5.5
|
|
|
1.4
|
|
|
(6.9
|
)
|
|
0.8
|
|
|||||
Comprehensive Income
|
$
|
60.5
|
|
|
$
|
140.2
|
|
|
$
|
118.0
|
|
|
$
|
(258.2
|
)
|
|
$
|
60.5
|
|
|
As of September 30, 2019
|
||||||||||||||||||
|
Parent
|
|
Guarantor
Subsidiaries |
|
Non-Guarantor
Subsidiaries |
|
Eliminations
|
|
Consolidated
|
||||||||||
ASSETS
|
|
|
|
|
|
|
|
|
|
||||||||||
Current Assets
|
|
|
|
|
|
|
|
|
|
||||||||||
Cash and cash equivalents
|
$
|
113.7
|
|
|
$
|
31.7
|
|
|
$
|
69.0
|
|
|
$
|
—
|
|
|
$
|
214.4
|
|
Accounts receivable, net of allowances
|
2.2
|
|
|
1,184.4
|
|
|
202.9
|
|
|
(1,231.8
|
)
|
|
157.7
|
|
|||||
Inventories
|
—
|
|
|
129.2
|
|
|
15.3
|
|
|
—
|
|
|
144.5
|
|
|||||
Prepaid expenses and other current assets
|
2.6
|
|
|
25.7
|
|
|
1.6
|
|
|
—
|
|
|
29.9
|
|
|||||
Total Current Assets
|
118.5
|
|
|
1,371.0
|
|
|
288.8
|
|
|
(1,231.8
|
)
|
|
546.5
|
|
|||||
Property, Plant and Equipment, net
|
—
|
|
|
157.8
|
|
|
24.3
|
|
|
—
|
|
|
182.1
|
|
|||||
Operating Lease Right-of-Use Assets
|
—
|
|
|
56.2
|
|
|
7.8
|
|
|
—
|
|
|
64.0
|
|
|||||
Investment in Consolidated Subsidiaries
|
2,444.3
|
|
|
334.0
|
|
|
—
|
|
|
(2,778.3
|
)
|
|
—
|
|
|||||
Goodwill
|
—
|
|
|
785.5
|
|
|
15.0
|
|
|
—
|
|
|
800.5
|
|
|||||
Other Intangible Assets, net
|
—
|
|
|
181.8
|
|
|
7.7
|
|
|
—
|
|
|
189.5
|
|
|||||
Other Assets
|
1.6
|
|
|
21.6
|
|
|
1.9
|
|
|
—
|
|
|
25.1
|
|
|||||
TOTAL ASSETS
|
$
|
2,564.4
|
|
|
$
|
2,907.9
|
|
|
$
|
345.5
|
|
|
$
|
(4,010.1
|
)
|
|
$
|
1,807.7
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
LIABILITIES AND EQUITY
|
|
|
|
|
|
|
|
|
|
||||||||||
Current Liabilities
|
|
|
|
|
|
|
|
|
|
||||||||||
Current portion of operating lease liabilities
|
$
|
—
|
|
|
$
|
12.2
|
|
|
$
|
2.3
|
|
|
$
|
—
|
|
|
$
|
14.5
|
|
Trade accounts payable
|
1,036.6
|
|
|
242.7
|
|
|
32.4
|
|
|
(1,217.0
|
)
|
|
94.7
|
|
|||||
Accrued expenses
|
11.5
|
|
|
99.7
|
|
|
12.5
|
|
|
(14.8
|
)
|
|
108.9
|
|
|||||
Total Current Liabilities
|
1,048.1
|
|
|
354.6
|
|
|
47.2
|
|
|
(1,231.8
|
)
|
|
218.1
|
|
|||||
Long-Term Debt
|
247.9
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
247.9
|
|
|||||
Operating Lease Liabilities
|
—
|
|
|
56.6
|
|
|
5.9
|
|
|
—
|
|
|
62.5
|
|
|||||
Other Long-Term Liabilities
|
1.5
|
|
|
7.9
|
|
|
2.9
|
|
|
—
|
|
|
12.3
|
|
|||||
Total Liabilities
|
1,297.5
|
|
|
419.1
|
|
|
56.0
|
|
|
(1,231.8
|
)
|
|
540.8
|
|
|||||
Total Equity
|
1,266.9
|
|
|
2,488.8
|
|
|
289.5
|
|
|
(2,778.3
|
)
|
|
1,266.9
|
|
|||||
TOTAL LIABILITIES AND EQUITY
|
$
|
2,564.4
|
|
|
$
|
2,907.9
|
|
|
$
|
345.5
|
|
|
$
|
(4,010.1
|
)
|
|
$
|
1,807.7
|
|
|
As of December 31, 2018
|
||||||||||||||||||
|
Parent
|
|
Guarantor
Subsidiaries
|
|
Non-Guarantor
Subsidiaries
|
|
Eliminations
|
|
Consolidated
|
||||||||||
ASSETS
|
|
|
|
|
|
|
|
|
|
||||||||||
Current Assets
|
|
|
|
|
|
|
|
|
|
||||||||||
Cash and cash equivalents
|
$
|
303.9
|
|
|
$
|
29.3
|
|
|
$
|
51.3
|
|
|
$
|
—
|
|
|
$
|
384.5
|
|
Accounts receivable, net of allowances
|
4.5
|
|
|
1,257.3
|
|
|
212.1
|
|
|
(1,323.4
|
)
|
|
150.5
|
|
|||||
Inventories
|
—
|
|
|
106.2
|
|
|
15.2
|
|
|
—
|
|
|
121.4
|
|
|||||
Prepaid expenses and other current assets
|
1.1
|
|
|
23.8
|
|
|
34.2
|
|
|
(1.9
|
)
|
|
57.2
|
|
|||||
Total Current Assets
|
309.5
|
|
|
1,416.6
|
|
|
312.8
|
|
|
(1,325.3
|
)
|
|
713.6
|
|
|||||
Property, Plant and Equipment, net
|
—
|
|
|
132.6
|
|
|
21.5
|
|
|
—
|
|
|
154.1
|
|
|||||
Investment in Consolidated Subsidiaries
|
2,404.2
|
|
|
234.7
|
|
|
—
|
|
|
(2,638.9
|
)
|
|
—
|
|
|||||
Goodwill
|
—
|
|
|
758.7
|
|
|
24.9
|
|
|
—
|
|
|
783.6
|
|
|||||
Other Intangible Assets, net
|
—
|
|
|
159.8
|
|
|
8.4
|
|
|
—
|
|
|
168.2
|
|
|||||
Other Assets
|
1.6
|
|
|
10.8
|
|
|
1.5
|
|
|
—
|
|
|
13.9
|
|
|||||
TOTAL ASSETS
|
$
|
2,715.3
|
|
|
$
|
2,713.2
|
|
|
$
|
369.1
|
|
|
$
|
(3,964.2
|
)
|
|
$
|
1,833.4
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
LIABILITIES AND EQUITY
|
|
|
|
|
|
|
|
|
|
||||||||||
Current Liabilities
|
|
|
|
|
|
|
|
|
|
||||||||||
Trade accounts payable
|
$
|
1,160.7
|
|
|
$
|
268.2
|
|
|
$
|
52.4
|
|
|
$
|
(1,311.4
|
)
|
|
$
|
169.9
|
|
Accrued expenses
|
8.2
|
|
|
77.3
|
|
|
22.8
|
|
|
(13.9
|
)
|
|
94.4
|
|
|||||
Total Current Liabilities
|
1,168.9
|
|
|
345.5
|
|
|
75.2
|
|
|
(1,325.3
|
)
|
|
264.3
|
|
|||||
Long-Term Debt
|
247.7
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
247.7
|
|
|||||
Other Long-Term Liabilities
|
1.5
|
|
|
20.0
|
|
|
2.7
|
|
|
—
|
|
|
24.2
|
|
|||||
Total Liabilities
|
1,418.1
|
|
|
365.5
|
|
|
77.9
|
|
|
(1,325.3
|
)
|
|
536.2
|
|
|||||
Total Equity
|
1,297.2
|
|
|
2,347.7
|
|
|
291.2
|
|
|
(2,638.9
|
)
|
|
1,297.2
|
|
|||||
TOTAL LIABILITIES AND EQUITY
|
$
|
2,715.3
|
|
|
$
|
2,713.2
|
|
|
$
|
369.1
|
|
|
$
|
(3,964.2
|
)
|
|
$
|
1,833.4
|
|
|
Nine Months Ended September 30, 2019
|
||||||||||||||||||
|
Parent
|
|
Guarantor
Subsidiaries
|
|
Non-Guarantor
Subsidiaries
|
|
Eliminations
|
|
Consolidated
|
||||||||||
Operating Activities
|
|
|
|
|
|
|
|
|
|
||||||||||
Cash (Used in) Provided by Operating Activities
|
$
|
(23.8
|
)
|
|
$
|
(70.4
|
)
|
|
$
|
22.6
|
|
|
$
|
—
|
|
|
$
|
(71.6
|
)
|
Investing Activities
|
|
|
|
|
|
|
|
|
|
||||||||||
Capital expenditures
|
—
|
|
|
(38.1
|
)
|
|
(4.4
|
)
|
|
—
|
|
|
(42.5
|
)
|
|||||
Acquisition of assets and businesses, net of cash acquired
|
(57.5
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(57.5
|
)
|
|||||
Intercompany contributions
|
—
|
|
|
110.4
|
|
|
0.1
|
|
|
(110.5
|
)
|
|
—
|
|
|||||
Cash (Used in) Provided by Investing Activities
|
(57.5
|
)
|
|
72.3
|
|
|
(4.3
|
)
|
|
(110.5
|
)
|
|
(100.0
|
)
|
|||||
Financing Activities
|
|
|
|
|
|
|
|
|
|
||||||||||
Intercompany contributions
|
(110.5
|
)
|
|
—
|
|
|
—
|
|
|
110.5
|
|
|
—
|
|
|||||
Debt repayments
|
(0.2
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(0.2
|
)
|
|||||
Purchases of treasury stock
|
(3.4
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(3.4
|
)
|
|||||
Proceeds from the exercise of stock options
|
5.2
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
5.2
|
|
|||||
Cash (Used in) Provided by Financing Activities
|
(108.9
|
)
|
|
—
|
|
|
—
|
|
|
110.5
|
|
|
1.6
|
|
|||||
Effect of Exchange Rate on Cash and Cash Equivalents
|
—
|
|
|
0.5
|
|
|
(0.6
|
)
|
|
—
|
|
|
(0.1
|
)
|
|||||
(Decrease) Increase in Cash and Cash Equivalents
|
(190.2
|
)
|
|
2.4
|
|
|
17.7
|
|
|
—
|
|
|
(170.1
|
)
|
|||||
Cash and Cash Equivalents, Beginning of Period
|
303.9
|
|
|
29.3
|
|
|
51.3
|
|
|
—
|
|
|
384.5
|
|
|||||
Cash and Cash Equivalents, End of Period
|
$
|
113.7
|
|
|
$
|
31.7
|
|
|
$
|
69.0
|
|
|
$
|
—
|
|
|
$
|
214.4
|
|
|
Nine Months Ended September 30, 2018
|
||||||||||||||||||
|
Parent
|
|
Guarantor
Subsidiaries
|
|
Non-Guarantor
Subsidiaries
|
|
Eliminations
|
|
Consolidated
|
||||||||||
Operating Activities
|
|
|
|
|
|
|
|
|
|
||||||||||
Cash (Used in) Provided by Operating Activities
|
$
|
(139.3
|
)
|
|
$
|
(5.9
|
)
|
|
$
|
7.0
|
|
|
$
|
—
|
|
|
$
|
(138.2
|
)
|
Investing Activities
|
|
|
|
|
|
|
|
|
|
||||||||||
Capital expenditures
|
—
|
|
|
(24.9
|
)
|
|
(6.5
|
)
|
|
—
|
|
|
(31.4
|
)
|
|||||
Acquisition of business, net of cash acquired
|
(65.6
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(65.6
|
)
|
|||||
Proceeds from the Divestiture
|
540.0
|
|
|
9.1
|
|
|
205.2
|
|
|
—
|
|
|
754.3
|
|
|||||
Cash dividends received from subsidiaries
|
—
|
|
|
233.5
|
|
|
—
|
|
|
(233.5
|
)
|
|
—
|
|
|||||
Intercompany contributions
|
—
|
|
|
(200.7
|
)
|
|
—
|
|
|
200.7
|
|
|
—
|
|
|||||
Cash Provided by Investing Activities
|
474.4
|
|
|
17.0
|
|
|
198.7
|
|
|
(32.8
|
)
|
|
657.3
|
|
|||||
Financing Activities
|
|
|
|
|
|
|
|
|
|
||||||||||
Intercompany contributions
|
200.7
|
|
|
—
|
|
|
—
|
|
|
(200.7
|
)
|
|
—
|
|
|||||
Debt repayments
|
(339.0
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(339.0
|
)
|
|||||
Purchases of treasury stock
|
(0.6
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(0.6
|
)
|
|||||
Proceeds from the exercise of stock options
|
16.8
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
16.8
|
|
|||||
Cash dividends paid to Guarantor
|
—
|
|
|
—
|
|
|
(233.5
|
)
|
|
233.5
|
|
|
—
|
|
|||||
Cash Used in Financing Activities
|
(122.1
|
)
|
|
—
|
|
|
(233.5
|
)
|
|
32.8
|
|
|
(322.8
|
)
|
|||||
Effect of Exchange Rate on Cash and Cash Equivalents
|
—
|
|
|
(0.5
|
)
|
|
(3.7
|
)
|
|
—
|
|
|
(4.2
|
)
|
|||||
Increase (Decrease) in Cash and Cash Equivalents
|
213.0
|
|
|
10.6
|
|
|
(31.5
|
)
|
|
—
|
|
|
192.1
|
|
|||||
Cash and Cash Equivalents, Beginning of Period
|
114.5
|
|
|
16.0
|
|
|
89.2
|
|
|
—
|
|
|
219.7
|
|
|||||
Cash and Cash Equivalents, End of Period
|
$
|
327.5
|
|
|
$
|
26.6
|
|
|
$
|
57.7
|
|
|
$
|
—
|
|
|
$
|
411.8
|
|
Item 2.
|
Management’s Discussion and Analysis of Financial Condition and Results of Operations
|
•
|
Business Acquisitions
|
•
|
Post-Divestiture Transition
|
•
|
Discontinued Operations
|
•
|
Restructuring Activities
|
•
|
Results of Operations and Related Information
|
•
|
Liquidity and Capital Resources
|
•
|
Legal Matters
|
•
|
Critical Accounting Policies
|
•
|
Information Concerning Forward-Looking Statements
|
(a)
|
Volume includes incremental sales of NeoMed, Summit and Game Ready products.
|
(b)
|
Other includes rounding.
|
|
Three Months Ended
September 30, |
|
|
|
Nine Months Ended
September 30, |
|
|
||||||||||||||
|
2019
|
|
2018
|
|
Change
|
|
2019
|
|
2018
|
|
Change
|
||||||||||
Net Sales
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
North America
|
$
|
133.9
|
|
|
$
|
130.0
|
|
|
3.0
|
%
|
|
$
|
390.0
|
|
|
$
|
374.1
|
|
|
4.3
|
%
|
Europe, Middle East and Africa
|
21.0
|
|
|
20.4
|
|
|
2.9
|
|
|
70.1
|
|
|
63.9
|
|
|
9.7
|
|
||||
Asia Pacific and Latin America
|
16.5
|
|
|
14.7
|
|
|
12.2
|
|
|
47.7
|
|
|
44.4
|
|
|
7.4
|
|
||||
Total Net Sales
|
$
|
171.4
|
|
|
$
|
165.1
|
|
|
3.8
|
%
|
|
$
|
507.8
|
|
|
$
|
482.4
|
|
|
5.3
|
%
|
|
Three Months Ended
September 30, |
|
Nine Months Ended
September 30, |
||||||||||||
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
Operating (Loss) Profit, as reported
|
$
|
(18.1
|
)
|
|
$
|
7.0
|
|
|
(52.5
|
)
|
|
8.8
|
|
||
|
|
|
|
|
|
|
|
||||||||
Restructuring and IT charges
|
8.4
|
|
|
5.4
|
|
|
16.2
|
|
|
12.2
|
|
||||
Post Divestiture transition charges
|
10.9
|
|
|
2.3
|
|
|
43.1
|
|
|
(1.0
|
)
|
||||
Acquisition-related charges
|
6.7
|
|
|
0.8
|
|
|
8.1
|
|
|
1.1
|
|
||||
Litigation and legal
|
8.0
|
|
|
3.7
|
|
|
21.4
|
|
|
6.6
|
|
||||
Intangibles amortization
|
5.1
|
|
|
5.4
|
|
|
14.6
|
|
|
14.6
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Adjusted Operating Profit (non-GAAP)
|
$
|
21.0
|
|
|
$
|
24.6
|
|
|
$
|
50.9
|
|
|
$
|
42.3
|
|
•
|
general economic conditions particularly in the United States,
|
•
|
fluctuations in global equity and fixed-income markets,
|
•
|
the competitive environment,
|
•
|
the loss of current customers or the inability to obtain new customers,
|
•
|
litigation and enforcement actions,
|
•
|
disruption in supply of raw materials or the distribution of finished goods,
|
•
|
price fluctuations in key commodities,
|
•
|
fluctuations in currency exchange rates,
|
•
|
changes in governmental regulations that are applicable to our business,
|
•
|
changes in asset valuations including write-downs of assets such as inventory, accounts receivable or other assets for impairment or other reasons, and
|
•
|
any other matters described elsewhere in this MD&A or in the Risk Factors section of this Form 10-Q or our Annual Report on Form 10-K for the year ended December 31, 2018.
|
Item 4.
|
Controls and Procedures
|
(a)
|
Exhibits
|
Exhibit
Number
|
|
Description
|
|
||
|
||
|
||
|
||
101.SCH
|
|
XBRL Taxonomy Extension Schema Document
|
101.CAL
|
|
XBRL Taxonomy Extension Calculation Linkbase Document
|
101.DEF
|
|
XBRL Taxonomy Extension Definition Linkbase Document
|
101.LAB
|
|
XBRL Taxonomy Extension Label Linkbase Document
|
101.PRE
|
|
XBRL Taxonomy Extension Presentation Linkbase Document
|
|
AVANOS MEDICAL, INC.
|
||
|
(Registrant)
|
||
|
|
|
|
November 5, 2019
|
By:
|
|
/s/ Warren J. Machan
|
|
|
|
Warren J. Machan
|
|
|
|
Senior Vice President, Business Strategy
|
|
|
|
and Interim Chief Financial Officer
|
|
|
|
(Principal Financial Officer)
|
|
|
|
|
November 5, 2019
|
By:
|
|
/s/ Renato Negro
|
|
|
|
Renato Negro
|
|
|
|
Vice President and Controller
|
|
|
|
(Principal Accounting Officer)
|
1 Year Avanos Medical Chart |
1 Month Avanos Medical Chart |
It looks like you are not logged in. Click the button below to log in and keep track of your recent history.
Support: +44 (0) 203 8794 460 | support@advfn.com
By accessing the services available at ADVFN you are agreeing to be bound by ADVFN's Terms & Conditions