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Halyard Health Hosts Inaugural Analyst and Investor Meeting

News Provided by PR Newswire2018-06-21
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Halyard Health Hosts Inaugural Analyst and Investor Meeting

Presents New Strategic Framework and Long-term Financial Outlook
Reiterates 2018 Guidance

 
[21-June-2018]
 

ALPHARETTA, Ga., June 21, 2018 /PRNewswire/ -- Halyard Health, Inc. (NYSE: HYH) ("Halyard", or "the Company", or "Avanos") today hosted its inaugural analyst and investor meeting in New York, where it presented the company's new strategic framework and its plan for delivering the next chapter of growth alongside an update around the company's rebranding and renaming into "Avanos". Avanos' leadership team provided additional detail on its strategy to accelerate growth and performance across the organization; updates on its two core franchises, Pain Management and Chronic Care; and, an overview of its approach to investing in innovation through R&D and M&A.

"At Avanos, we're helping our customers address some of the most significant healthcare challenges we face today. As our global marketplace continues to evolve, our company will be well-placed to deliver superior, breakthrough solutions to improve patients' quality of life and get them back to the things that matter," said Joe Woody, chief executive officer of Avanos. "Today, we presented our new strategic framework for accelerating innovation and growth to achieve category leadership through a focus on investments, performance and people. This strategy, combined with our large addressable market opportunities and enhanced capabilities as a focused medical devices company, will enable us to deliver profitable, sustainable growth and value creation."

Strategic Framework and Growth Plan

Avanos' new strategic framework is designed to continue to accelerate the company's growth and leverage its strong momentum following the successful transformation into a pure-play medical devices business. The strategic priorities for our business reflect the evolving demands of our customers and the dynamics of the broader healthcare and medical device industry. By remaining ahead of these trends, Avanos will continue to deliver top-quartile total shareholder returns.

The next phase of Avanos' growth will be delivered through a focus on achieving full potential organic growth, primarily through increased innovation across the portfolio, enhanced commercial execution and stronger performance across the international business. Through disciplined, strategic M&A, the company will drive complementary growth, focused on seizing opportunities in attractive adjacencies. Finally, Avanos will generate further value by right-sizing the cost structure and identifying additional efficiencies across the organization.

Financial Targets Exiting 2021

The company today also outlined its capital allocation framework, designed to maximize sustainable, long-term value creation. The company disclosed the following long-term financial targets to be achieved on or before the end of 2021:

  • Organic top-line growth: from mid-single digits to high single digits
  • Gross margin: from low-60s to mid-60s
  • R&D spend (as % of sales): from less than 6% to 6-7%
  • SG&A (as % of sales): from low 40s to mid-30s
  • EBITDA margins: from mid-teens to mid-20s

Webcast Replay Information

Halyard Health will host a webcast of the meeting to provide access to all interested stakeholders. The simultaneous webcast can be accessed via the Investors section of the Halyard Health website, https://halyardhealth.investorroom.com/. Slides from the meeting will be available to those viewing the webcast. Within 24 hours of the webcast, a replay including presentation slides will be accessible in the Investors section of the website.

About Halyard Health

Halyard Health (NYSE: HYH) is a medical technology company focused on delivering clinically superior breakthrough medical device solutions to improve patients' quality of life. Headquartered in Alpharetta, Georgia, Halyard is committed to addressing some of today's most important healthcare needs, such as reducing the use of opioids while helping patients move from surgery to recovery. Halyard develops, manufactures and markets its recognized brands in more than 90 countries. For more information, visit www.halyardhealth.com.

As previously announced, Halyard Health is changing its name to Avanos Medical, Inc., effective June 30, 2018. Its current ticker symbol on the New York Stock Exchange (HYH) is also changing at that time to AVNS. The first day of trading under the new ticker symbol will be July 2, 2018.

Forward-Looking Statements 

This press release contains information that includes or is based on "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are based on the current plans and expectations of management and are subject to various risks and uncertainties that could cause our actual results to differ materially from those expressed or implied in such statements. 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", " estimate", "anticipate", "plan", or "continue" and similar expressions, among others. Factors that may cause actual results to differ materially from the anticipated results expressed in such forward looking statements include, but are not limited to: 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; changes in foreign exchange markets; legislative and regulatory actions; unanticipated issues arising in connection with clinical studies and otherwise that affect U.S. Food and Drug Administration approval of new products; changes in reimbursement levels from third-party payors; a significant increase in product liability claims; the impact of investigative and legal proceedings and compliance risks; the impact of the federal legislation to reform the United States healthcare system; changes in financial markets; and changes in the competitive environment. Additional information concerning these and other factors that may impact future results is contained in our filings with the U.S. Securities and Exchange Commission, including our most recent Form 10-K and Quarterly Reports on Form 10-Q.

Cision View original content:http://www.prnewswire.com/news-releases/halyard-health-hosts-inaugural-analyst-and-investor-meeting-300670088.html

SOURCE Halyard Health, Inc.


Company Codes: NYSE:HYH, NYSE:AVNS


© 2018 PR Newswire. All Rights Reserved.

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The news, reports, views and opinions of authors (or source) expressed are their own and do not necessarily represent the views of CRWE World.


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