Avanos Medical, Inc.

Good morning ladies and gentlemen and welcome to the Avanos Second Quarter 2025 earnings conference call. At this time all lines are in listen only mode. Following the presentation we will conduct a question and answer session and if at any time during this call you require immediate assistance please press star zero for the operator. I would now like to turn the conference over to Scott Calavan, Chief Financial Officer, please go ahead sir.

Good morning everyone and thanks for joining us. It's my pleasure to welcome you to Avanos 2025 Second Quarter earnings conference call. Presenting today will be Dave Pasitti, CEO who will kick off the call by sharing a few leadership updates. Dave will then provide a high level overview of our Second Quarter results before turning it over to Jason Pickett who has been serving as our interim CFO. Jason will share additional details on these topics, provide an overview of our financial results and affirm our 2025 planning assumptions inclusive of the impact of tariffs. We will finish the call with Q&A. A presentation for today's call is available on the investor section of our website Avanos.com. As a reminder our comments today contain forward looking statements related to the company, our expected performance and current economic conditions including risk related to ongoing tariff negotiations and our industry. No assurance can be given as to future financial results. Actual results could differ materially from those in the forward looking statements. For more information about forward looking statements and the risk factors that could influence future results, please see today's press release and risk factors described in our filings with the SEC. Additionally, we will be referring to adjusted results and outlook. The press release has information on these adjustments and reconciliations to comparable gap financial measures. Now I'll turn the call over to Dave.

Thanks Scott and good morning everyone. I'd like to begin today by addressing the leadership changes that we announced earlier this morning. First it's my great pleasure to announce that Scott Gallivan previously our SVP of strategy and corporate development has been appointed Avanos' new chief financial officer. In his 12 plus years with the company Scott has been instrumental in executing our strategy, identifying and pursuing strategic acquisitions and divestitures to strengthen our portfolio and keeping Avanos focused on the future. His extensive experience navigating complex transactions will be absolutely critical as we build on our transformation efforts. We're excited to welcome him to this role and look forward to his dynamic leadership and valuable contributions. I'd also like to take this opportunity to thank Jason Pickett for serving as our interim CFO while we conducted our search to fill this role. We greatly appreciate his leadership and his commitment to keeping us on the right path during this transitional period. Jason will continue to lead our tax, treasury and accounting functions. Finally, I'm honored to announce I've been appointed to Avanos' board of directors, working alongside our board members to guide Avanos strategic direction and focus on delivering long-term shareholder value will truly be my privilege. Now, we will shift our comments to our quarterly results and outlook. Building off our first quarter results, we delivered a strong second quarter anchored by continued healthy performance of our life-sustaining specialty nutrition system segment, along with continued progress in our opioid-sparing pain management and recovery segment. The demand for our product remains robust and I'm pleased with the foundation laid out for our three-year transformation efforts. During my first 100 days, I've reviewed the initiatives that we were identified and implemented within the transformation journey. I've encouraged by the progress of these initiatives and believe that these are additional opportunities to advance our optimization efforts. While still early in my tenure, I'm confident we can improve our commercial effectiveness through organizational enhancements, innovative and capital-efficient -to-market approaches and strategic partnerships. In addition, I believe there are further operating model improvements and cost reduction opportunities through the organization that we will be addressing in the coming quarters. Next, I'm pleased to share that on July 31st, we closed the sale of our hyaluronic acid product line of business. While we are not disclosing the financial term, we are very pleased with this divestiture, which represents a meaningful step in advancing our transformation strategy and reinforcing our commitment to focus growth in our two strategic segments, specialty nutrition systems and pain management and recovery. Now, turning to our second quarter results. For the quarter, we achieved net sales of 175 million, adjusted for the effects of foreign exchange and the impact of our strategic decision to withdraw from revenue streams that did not meet the return criteria specified by our portfolio transformation priority. Organic sales were up 2% compared to a year ago. Additionally, we regenerated 17 cents of adjusted diluted earnings per share and 17 million of adjusted EBITDA with adjusted gross margins of .7% and SG&A as a percentage of revenue of 45.2%. Finally, due to downward pressure on our market capitalization, we assessed goodwill for impairment during the second quarter and recorded a non-cash impairment charge of 77 million in the pain management and recovery reporting unit. Our overall execution this quarter was solid and the steady progress we made against each of our transformation priorities provides confidence in our ability to achieve the ranges of our 2025 financial guidance. With that, let me turn the call over to Jason, who will further discuss our second quarter financial results as well as our 2025 outlook.