Avanos Medical , Inc. (NYSE:AVNS), a healthcare company with a market capitalization of $824 million and strong financial health according to InvestingPro metrics, has entered into a consulting agreement with Warren Machan, who will take on the role of Interim Chief Financial Officer, as announced on Monday.
The agreement, effective until May 31, 2025, or until an earlier termination date as agreed by both parties, includes a monthly fixed fee compensation of $45,000 through February 28, 2025, which will increase to $60,000 per month from March 1, 2025, to the end of the term. Additionally, Machan is set to receive two cash bonuses of $45,000 each, one post-February and another post-May, provided the consulting agreement remains active and his performance meets the company's satisfaction. The company maintains a healthy balance sheet with a current ratio of 2.22 and operates with moderate debt levels.
Machan's performance will be evaluated by Avanos Medical (TASE:PMCN)'s Interim Chief Executive Officer, or by the Chief Executive Officer if a permanent one is appointed. The agreement specifies that aside from the fixed fees and potential bonuses, Machan is not entitled to any other compensation or benefits, including equity-based incentives.
This strategic appointment is part of Avanos Medical's ongoing efforts to strengthen its executive team. The company, specializing in surgical appliances and supplies, is headquartered in Alpharetta, Georgia, and operates under Delaware incorporation.
In other recent news, Avanos Medical has announced a $25 million stock buyback program. This development, approved by the Board of Directors, allows the company to repurchase its common stock over the next year. The company has also reported Q3 earnings with sales approximating $170 million and adjusted earnings per share at $0.36. Despite not reaching its organic growth target, Avanos Medical completed the divestiture of its respiratory health business, which has positively impacted cash flow and strengthened its balance sheet.
In addition to these financial developments, Avanos Medical has received FDA approval for the CORGRIP SR Nasal Bridle System, which is expected to contribute to long-term growth. The company is also actively seeking strategic mergers and acquisitions. For Q4, Avanos Medical projects revenue between $175 million to $180 million, with a 59% adjusted gross margin.
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