CONMED Corporation Announces Fourth Quarter and Full-Year 2024 Financial Results
CONMED (NYSE: CNMD) reported its Q4 and full-year 2024 financial results. In Q4, sales reached $345.9 million, up 5.8% year-over-year, with domestic revenue increasing 6.8% and international revenue growing 4.4%. Q4 GAAP earnings per share were $1.08, while adjusted EPS reached $1.34, up 26.4% from Q4 2023.
For full-year 2024, sales totaled $1,307.0 million, a 5.0% increase, with domestic revenue up 6.9% and international revenue rising 2.6%. Full-year GAAP EPS was $4.25, with adjusted EPS at $4.17, up 20.9% from 2023.
Looking ahead to 2025, CONMED projects revenue between $1.344-1.372 billion, representing 4-6% constant currency growth, and adjusted EPS of $4.25-$4.40, factoring in currency headwinds but excluding potential tariff impacts.
CONMED (NYSE: CNMD) ha riportato i risultati finanziari per il Q4 e l'intero anno 2024. Nel Q4, le vendite hanno raggiunto 345,9 milioni di dollari, con un aumento del 5,8% rispetto all'anno precedente, con un incremento del 6,8% nel fatturato domestico e una crescita del 4,4% nel fatturato internazionale. L'utile per azione GAAP del Q4 è stato di 1,08 dollari, mentre l'EPS rettificato ha raggiunto 1,34 dollari, aumentando del 26,4% rispetto al Q4 2023.
Per l'intero anno 2024, le vendite hanno totalizzato 1.307,0 milioni di dollari, un incremento del 5,0%, con un fatturato domestico in aumento del 6,9% e un fatturato internazionale che è salito del 2,6%. L'EPS GAAP per l'intero anno è stato di 4,25 dollari, con un EPS rettificato a 4,17 dollari, in aumento del 20,9% rispetto al 2023.
Guardando al 2025, CONMED prevede ricavi tra 1,344-1,372 miliardi di dollari, rappresentando una crescita costante della valuta del 4-6%, e un EPS rettificato di 4,25-4,40 dollari, considerando i venti contrari della valuta ma escludendo i potenziali impatti tariffari.
CONMED (NYSE: CNMD) anunció sus resultados financieros del cuarto trimestre y del año completo 2024. En el cuarto trimestre, las ventas alcanzaron 345,9 millones de dólares, un aumento del 5,8% en comparación con el año anterior, con ingresos domésticos en aumento del 6,8% y ingresos internacionales creciendo un 4,4%. Las ganancias por acción GAAP del cuarto trimestre fueron de 1,08 dólares, mientras que el EPS ajustado alcanzó 1,34 dólares, un aumento del 26,4% respecto al cuarto trimestre de 2023.
Para el año completo 2024, las ventas totalizaron 1.307,0 millones de dólares, un incremento del 5,0%, con ingresos domésticos en aumento del 6,9% y los ingresos internacionales subiendo un 2,6%. El EPS GAAP para el año completo fue de 4,25 dólares, con un EPS ajustado de 4,17 dólares, un aumento del 20,9% respecto a 2023.
De cara a 2025, CONMED proyecta ingresos entre 1,344-1,372 mil millones de dólares, representando un crecimiento constante de la moneda del 4-6%, y un EPS ajustado de 4,25-4,40 dólares, teniendo en cuenta las presiones cambiarias pero excluyendo posibles impactos de aranceles.
CONMED (NYSE: CNMD)는 2024년 4분기 및 연간 재무 결과를 발표했습니다. 4분기 동안 매출은 3억 4,590만 달러에 달했으며, 전년 대비 5.8% 증가하였고, 국내 매출이 6.8% 증가하고 국제 매출이 4.4% 성장했습니다. 4분기 GAAP 주당 순이익은 1.08달러였으며, 조정된 주당 순이익은 1.34달러로 2023년 4분기 대비 26.4% 증가했습니다.
2024년 전체 연간 매출은 13억 7,000만 달러로, 5.0% 증가하였으며, 국내 매출은 6.9% 증가하고 국제 매출은 2.6% 상승했습니다. 연간 GAAP 주당순이익은 4.25달러였으며, 조정된 주당 순이익은 4.17달러로 2023년 대비 20.9% 상승했습니다.
2025년을 바라보며, CONMED는 13억 4,400만-13억 7,200만 달러의 매출을 예상하고 있으며, 이는 4-6%의 일정한 통화 성장에 해당하며, 4.25-4.40달러의 조정된 주당 순이익을 예측하고 있습니다. 이 수치는 통화의 불리한 영향을 반영하지만 잠재적인 관세 영향을 제외한 수치입니다.
CONMED (NYSE: CNMD) a publié ses résultats financiers pour le quatrième trimestre et l'année complète 2024. Au quatrième trimestre, les ventes ont atteint 345,9 millions de dollars, soit une augmentation de 5,8 % par rapport à l'année précédente, avec des revenus domestiques en hausse de 6,8 % et des revenus internationaux en croissance de 4,4 %. Le bénéfice par action GAAP du quatrième trimestre était de 1,08 dollar, tandis que le BPA ajusté a atteint 1,34 dollar, en hausse de 26,4 % par rapport au quatrième trimestre 2023.
Pour l'année complète 2024, les ventes ont totalisé 1 307,0 millions de dollars, soit une augmentation de 5,0 %, avec des revenus domestiques en hausse de 6,9 % et des revenus internationaux en hausse de 2,6 %. Le BPA GAAP pour l'année complète était de 4,25 dollars, avec un BPA ajusté de 4,17 dollars, en hausse de 20,9 % par rapport à 2023.
En regardant vers 2025, CONMED projette des revenus compris entre 1,344-1,372 milliard de dollars, représentant une croissance de la monnaie constant de 4-6 %, et un BPA ajusté de 4,25-4,40 dollars, tenant compte des vents contraires monétaires mais excluant les impacts tarifaires potentiels.
CONMED (NYSE: CNMD) hat seine finanziellen Ergebnisse für das vierte Quartal und das gesamte Jahr 2024 veröffentlicht. Im vierten Quartal erreichten die Verkäufe 345,9 Millionen Dollar, was einem Anstieg von 5,8 % im Jahresvergleich entspricht, mit einem Zuwachs von 6,8 % beim Inlandsumsatz und einem Anstieg von 4,4 % beim internationalen Umsatz. Der GAAP-Gewinn pro Aktie betrug im vierten Quartal 1,08 Dollar, während das bereinigte EPS 1,34 Dollar erreichte, was einem Anstieg von 26,4 % im Vergleich zum vierten Quartal 2023 entspricht.
Für das gesamte Jahr 2024 beliefen sich die Verkäufe auf 1.307,0 Millionen Dollar, ein Anstieg von 5,0 %, wobei die Einnahmen im Inland um 6,9 % stiegen und die internationalen Einnahmen um 2,6 % zulegten. Das GAAP-EPS für das gesamte Jahr betrug 4,25 Dollar, während das bereinigte EPS bei 4,17 Dollar lag, was einem Anstieg von 20,9 % gegenüber 2023 entspricht.
Ausblick auf 2025 prognostiziert CONMED einen Umsatz zwischen 1,344-1,372 Milliarden Dollar, was einem konstanten Währungswachstum von 4-6 % entspricht, und einem bereinigten EPS von 4,25-4,40 Dollar, wobei Währungsrisiken einbezogen, aber potenzielle tarifliche Auswirkungen ausgeschlossen sind.
- Q4 sales increased 5.8% to $345.9 million
- Q4 adjusted EPS grew 26.4% to $1.34
- Full-year sales rose 5.0% to $1.307 billion
- Full-year adjusted EPS increased 20.9% to $4.17
- Domestic revenue growth outpaced international in both Q4 and full-year
- Persistent supply challenges affected business performance
- Expected currency headwinds of $0.15-$0.20 for 2025
- Potential impact from new tariffs not included in guidance
Insights
CONMED's Q4 and FY2024 performance reveals a company successfully navigating operational headwinds while delivering profitable growth. The
The domestic market remains the growth engine, with
The 2025 guidance presents a measured outlook with
Most telling is management's focus on operational improvements for 2025, suggesting internal recognition of efficiency opportunities. The supply challenges mentioned likely impacted inventory management and working capital efficiency, areas where improvements could drive additional value in 2025.
The projected adjusted EPS growth from
Fourth Quarter 2024 Highlights
-
Sales of
increased$345.9 million 5.8% year over year as reported and6.0% in constant currency. -
Domestic revenue increased
6.8% year over year. -
International revenue increased
4.4% year over year as reported and5.0% in constant currency. -
Diluted net earnings per share (GAAP) were
compared to diluted net earnings per share (GAAP) of$1.08 in the fourth quarter of 2023.$1.05 -
Adjusted diluted net earnings per share(1) were
, an increase of$1.34 26.4% compared to the fourth quarter of 2023.
Full-Year 2024 Highlights
-
Sales of
increased$1,307.0 5.0% year over year as reported and5.3% in constant currency. -
Domestic revenue increased
6.9% year over year. -
International revenue increased
2.6% year over year as reported and3.4% in constant currency. -
Diluted net earnings per share (GAAP) were
compared to diluted net earnings per share (GAAP) of$4.25 in 2023.$2.04 -
Adjusted diluted net earnings per share(1) were
, an increase of$4.17 20.9% compared to 2023.
“2024 was a year of solid sales and earnings growth but was also challenging as we navigated persistent supply challenges for parts of our business. I am pleased with our progress in the fourth quarter, particularly with respect to our improved profitability,” commented Patrick J. Beyer, CONMED’s President and Chief Executive Officer. “In 2025, we are laser focused on improving our operations and strengthening our foundation for future above-market revenue and profitability growth.”
2025 Outlook
The Company expects full-year 2025 reported revenue between
The Company expects full-year 2025 adjusted diluted net earnings per share(2) in the range of
Supplemental Financial Disclosures
(1) A reconciliation of reported diluted net earnings per share to adjusted diluted net earnings per share, a non-GAAP financial measure, appears below.
(2) Information reconciling forward-looking adjusted diluted net earnings per share to the comparable GAAP financial measures is unavailable to the company without unreasonable effort, as discussed below.
Conference Call
The Company’s management will host a conference call today at 4:30 p.m. ET to discuss its fourth quarter and full-year 2024 results.
To participate in the conference call via telephone, please click here to pre-register and obtain the dial-in number and passcode.
This conference call will also be webcast and can be accessed from the “Investors” section of CONMED's website at www.conmed.com. The webcast replay of the call will be available at the same site approximately one hour after the end of the call.
Consolidated Condensed Statements of Income |
||||||||||||||||
(in thousands except per share amounts, unaudited) |
||||||||||||||||
|
|
|
|
|
|
|
|
|
||||||||
|
|
Three Months Ended |
|
Year Ended |
||||||||||||
|
|
December 31, |
|
December 31, |
||||||||||||
|
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
|
|
|
|
|
|
|
|
|
||||||||
Net sales |
|
$ |
345,944 |
|
|
$ |
327,045 |
|
|
$ |
1,307,015 |
|
|
$ |
1,244,744 |
|
Cost of sales |
|
|
147,600 |
|
|
|
144,870 |
|
|
|
573,983 |
|
|
|
568,499 |
|
Gross profit |
|
|
198,344 |
|
|
|
182,175 |
|
|
|
733,032 |
|
|
|
676,245 |
|
% of sales |
|
|
57.3 |
% |
|
|
55.7 |
% |
|
|
56.1 |
% |
|
|
54.3 |
% |
Selling & administrative expense |
|
|
132,669 |
|
|
|
117,960 |
|
|
|
478,280 |
|
|
503,040 |
|
|
Research & development expense |
|
|
13,176 |
|
|
|
14,028 |
|
|
|
54,426 |
|
|
|
52,602 |
|
Income from operations |
|
|
52,499 |
|
|
|
50,187 |
|
|
|
200,326 |
|
|
|
120,603 |
|
% of sales |
|
|
15.2 |
% |
|
|
15.3 |
% |
|
|
15.3 |
% |
|
|
9.7 |
% |
Interest expense |
|
|
8,857 |
|
|
|
9,505 |
|
|
|
37,297 |
|
|
|
39,775 |
|
Income before income taxes |
|
|
43,642 |
|
|
|
40,682 |
|
|
|
163,029 |
|
|
|
80,828 |
|
Provision for income taxes |
|
|
9,888 |
|
|
|
7,611 |
|
|
|
30,606 |
|
|
|
16,369 |
|
Net income |
|
$ |
33,754 |
|
|
$ |
33,071 |
|
|
$ |
132,423 |
|
|
$ |
64,459 |
|
|
|
|
|
|
|
|
|
|
||||||||
Basic EPS |
|
$ |
1.09 |
|
|
$ |
1.08 |
|
|
$ |
4.29 |
|
|
$ |
2.10 |
|
Diluted EPS |
|
|
1.08 |
|
|
|
1.05 |
|
|
|
4.25 |
|
|
|
2.04 |
|
|
|
|
|
|
|
|
|
|
||||||||
Basic shares |
|
|
30,923 |
|
|
|
30,759 |
|
|
|
30,846 |
|
|
|
30,668 |
|
Diluted shares |
|
|
31,146 |
|
|
|
31,502 |
|
|
|
31,150 |
|
|
|
31,548 |
|
Sales Summary |
|||||||||||||||||||||||
(in millions, unaudited) |
|||||||||||||||||||||||
|
|||||||||||||||||||||||
Three Months Ended December 31, |
|||||||||||||||||||||||
|
|
|
% Change |
||||||||||||||||||||
|
|
|
|
|
|
|
Domestic |
|
International |
||||||||||||||
|
2024 |
|
|
2023 |
|
|
As Reported |
Impact of Foreign Currency |
Constant Currency |
|
As Reported |
|
As Reported |
Impact of Foreign Currency |
Constant Currency |
||||||||
Orthopedic Surgery |
$ |
139.0 |
|
$ |
136.5 |
|
1.8 |
% |
0.6 |
% |
2.4 |
% |
5.2 |
% |
-0.2 |
% |
0.8 |
% |
0.6 |
% |
|||
General Surgery |
|
206.9 |
|
|
190.5 |
|
8.6 |
% |
0.1 |
% |
8.7 |
% |
7.4 |
% |
11.9 |
% |
0.1 |
% |
12.0 |
% |
|||
$ |
345.9 |
|
$ |
327.0 |
|
5.8 |
% |
0.2 |
% |
6.0 |
% |
6.8 |
% |
4.4 |
% |
0.6 |
% |
5.0 |
% |
||||
Single-use Products |
$ |
297.3 |
|
$ |
271.3 |
|
9.6 |
% |
0.2 |
% |
9.8 |
% |
7.5 |
% |
13.0 |
% |
0.7 |
% |
13.7 |
% |
|||
Capital Products |
|
48.6 |
|
|
55.7 |
|
-12.7 |
% |
0.3 |
% |
-12.4 |
% |
1.8 |
% |
-22.9 |
% |
0.5 |
% |
-22.4 |
% |
|||
$ |
345.9 |
|
$ |
327.0 |
|
5.8 |
% |
0.2 |
% |
6.0 |
% |
6.8 |
% |
4.4 |
% |
0.6 |
% |
5.0 |
% |
||||
Domestic |
$ |
203.3 |
|
$ |
190.3 |
|
6.8 |
% |
0.0 |
% |
6.8 |
% |
|||||||||||
International |
|
142.6 |
|
|
136.7 |
|
4.4 |
% |
0.6 |
% |
5.0 |
% |
|||||||||||
$ |
345.9 |
|
$ |
327.0 |
|
5.8 |
% |
0.2 |
% |
6.0 |
% |
||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
|
|||||||||||||||||||||||
Year Ended December 31, |
|||||||||||||||||||||||
|
|
|
% Change |
||||||||||||||||||||
|
|
|
|
|
|
|
Domestic |
|
International |
||||||||||||||
|
2024 |
|
|
2023 |
|
|
As Reported |
Impact of Foreign Currency |
Constant Currency |
|
As Reported |
|
As Reported |
Impact of Foreign Currency |
Constant Currency |
||||||||
Orthopedic Surgery |
$ |
544.0 |
|
$ |
533.1 |
|
2.0 |
% |
0.5 |
% |
2.5 |
% |
5.6 |
% |
-0.1 |
% |
0.8 |
% |
0.7 |
% |
|||
General Surgery |
|
763.0 |
|
|
711.6 |
|
7.2 |
% |
0.3 |
% |
7.5 |
% |
7.4 |
% |
6.9 |
% |
0.7 |
% |
7.6 |
% |
|||
$ |
1,307.0 |
|
$ |
1,244.7 |
|
5.0 |
% |
0.3 |
% |
5.3 |
% |
6.9 |
% |
2.6 |
% |
0.8 |
% |
3.4 |
% |
||||
Single-use Products |
$ |
1,112.1 |
|
$ |
1,038.5 |
|
7.1 |
% |
0.3 |
% |
7.4 |
% |
8.0 |
% |
5.7 |
% |
0.8 |
% |
6.5 |
% |
|||
Capital Products |
|
194.9 |
|
|
206.2 |
|
-5.5 |
% |
0.4 |
% |
-5.1 |
% |
-1.0 |
% |
-9.0 |
% |
0.7 |
% |
-8.3 |
% |
|||
$ |
1,307.0 |
|
$ |
1,244.7 |
|
5.0 |
% |
0.3 |
% |
5.3 |
% |
6.9 |
% |
2.6 |
% |
0.8 |
% |
3.4 |
% |
||||
Domestic |
$ |
748.2 |
|
$ |
700.1 |
|
6.9 |
% |
0.0 |
% |
6.9 |
% |
|||||||||||
International |
|
558.8 |
|
|
544.6 |
|
2.6 |
% |
0.8 |
% |
3.4 |
% |
|||||||||||
$ |
1,307.0 |
|
$ |
1,244.7 |
|
5.0 |
% |
0.3 |
% |
5.3 |
% |
Reconciliation of Reported Net Income to Adjusted Net Income |
|||||||||||||||||||||||
(in thousands, except per share amounts, unaudited) |
|||||||||||||||||||||||
Three Months Ended December 31, 2024 |
|||||||||||||||||||||||
Gross Profit |
Selling & Administrative Expense |
Operating Income |
Interest
|
Tax
|
Effective Tax Rate |
Net Income |
Diluted EPS |
||||||||||||||||
As reported |
$ |
198,344 |
|
$ |
132,669 |
|
$ |
52,499 |
|
$ |
8,857 |
|
$ |
9,888 |
|
22.7 |
% |
$ |
33,754 |
|
$ |
1.08 |
|
% of sales |
|
57.3 |
% |
|
38.3 |
% |
|
15.2 |
% |
||||||||||||||
Contingent consideration fair value adjustments(1) |
|
- |
|
|
(1,219 |
) |
|
1,219 |
|
|
- |
|
|
1,058 |
|
|
161 |
|
|||||
Hurricane impact(2) |
|
955 |
|
|
- |
|
|
955 |
|
|
- |
|
|
829 |
|
|
126 |
|
|||||
Lease impairment(3) |
|
- |
|
|
(606 |
) |
|
606 |
|
|
- |
|
|
526 |
|
|
80 |
|
|||||
Legal matters(4) |
|
- |
|
|
(531 |
) |
|
531 |
|
|
- |
|
|
461 |
|
|
70 |
|
|||||
$ |
199,299 |
|
$ |
130,313 |
|
$ |
55,810 |
|
$ |
8,857 |
|
$ |
12,762 |
|
|
$ |
34,191 |
|
|||||
Adjusted gross profit % |
|
57.6 |
% |
||||||||||||||||||||
Amortization(5) |
$ |
1,500 |
|
|
(7,162 |
) |
|
8,662 |
|
|
(1,443 |
) |
|
2,456 |
|
|
7,649 |
|
|||||
As adjusted |
$ |
123,151 |
|
$ |
64,472 |
|
$ |
7,414 |
|
$ |
15,218 |
|
26.7 |
% |
$ |
41,840 |
|
$ |
1.34 |
|
|||
% of sales |
|
|
35.6 |
% |
|
18.6 |
% |
||||||||||||||||
|
|||||||||||||||||||||||
Shares |
|
31,146 |
|
||||||||||||||||||||
Convertible note hedges(6) |
|
- |
|
||||||||||||||||||||
Adjusted diluted shares |
|
31,146 |
|
||||||||||||||||||||
|
Three Months Ended December 31, 2023 |
||||||||||||||||||||||
Gross Profit |
Selling & Administrative Expense |
Operating Income |
Interest
|
Tax
|
Effective Tax Rate |
Net Income |
Diluted EPS |
||||||||||||||||
As reported |
$ |
182,175 |
|
$ |
117,960 |
|
$ |
50,187 |
|
$ |
9,505 |
|
$ |
7,611 |
|
18.7 |
% |
$ |
33,071 |
|
$ |
1.05 |
|
% of sales |
|
55.7 |
% |
|
36.1 |
% |
|
15.3 |
% |
||||||||||||||
Contingent consideration fair value adjustments(1) |
|
- |
|
|
9,370 |
|
|
(9,370 |
) |
|
- |
|
|
703 |
|
|
(10,073 |
) |
|
||||
Acquisition and integration costs(7) |
|
2,154 |
|
|
- |
|
|
2,154 |
|
|
- |
|
|
(162 |
) |
|
2,316 |
|
|
||||
$ |
184,329 |
|
$ |
127,330 |
|
$ |
42,971 |
|
$ |
9,505 |
|
$ |
8,152 |
|
|
$ |
25,314 |
|
|||||
Adjusted gross profit % |
|
56.4 |
% |
||||||||||||||||||||
Amortization(5) |
$ |
1,500 |
|
|
(7,295 |
) |
|
8,795 |
|
|
(1,500 |
) |
|
2,458 |
|
|
7,837 |
|
|||||
As adjusted |
$ |
120,035 |
|
$ |
51,766 |
|
$ |
8,005 |
|
$ |
10,610 |
|
24.2 |
% |
$ |
33,151 |
|
$ |
1.06 |
|
|||
% of sales |
|
36.7 |
% |
|
15.8 |
% |
|||||||||||||||||
|
|||||||||||||||||||||||
Shares |
|
31,502 |
|
||||||||||||||||||||
Convertible note hedges(6) |
|
(110 |
) |
||||||||||||||||||||
Adjusted diluted shares |
|
31,392 |
|
||||||||||||||||||||
(1) In 2024 and 2023, the Company recorded income/(expense) related to the fair value adjustments of contingent consideration. |
(2) In 2024, the Company incurred costs due to the impact of Hurricane Milton on our |
(3) In 2024, the Company recorded lease impairment expense related to a storage facility no longer utilized. |
(4) In 2024, the Company incurred costs for third party services pertaining to potential issues with certain royalty payments to design surgeons. |
(5) Includes amortization of intangible assets and deferred financing fees. |
(6) Non-GAAP adjusted dilutive weighted average shares outstanding exclude dilution that is expected to be offset by the Company’s convertible notes hedge transactions. |
(7) In 2023, the Company incurred charges related to the amortization of inventory step-up to fair value associated with the acquisition of In2Bones Global, Inc. |
Reconciliation of Reported Net Income to Adjusted Net Income |
|||||||||||||||||||||||
(in thousands, except per share amounts, unaudited) |
|||||||||||||||||||||||
Year Ended December 31, 2024 |
|||||||||||||||||||||||
Gross Profit |
Selling & Administrative Expense |
Operating Income |
Interest
|
Tax
|
Effective Tax Rate |
Net Income |
Diluted EPS |
||||||||||||||||
As reported |
$ |
733,032 |
|
$ |
478,280 |
|
$ |
200,326 |
|
$ |
37,297 |
|
$ |
30,606 |
|
18.8 |
% |
$ |
132,423 |
|
$ |
4.25 |
|
% of sales |
|
56.1 |
% |
|
36.6 |
% |
|
15.3 |
% |
||||||||||||||
Legal matters(1) |
|
- |
|
|
(5,097 |
) |
|
5,097 |
|
|
- |
|
|
806 |
|
|
4,291 |
|
|||||
Restructuring and related costs(2) |
|
235 |
|
|
(1,539 |
) |
|
1,774 |
|
|
- |
|
|
255 |
|
|
1,519 |
|
|||||
Asset impairment costs (3) |
|
1,414 |
|
|
- |
|
|
1,414 |
|
|
- |
|
|
203 |
|
|
1,211 |
|
|||||
Hurricane impact(4) |
|
955 |
|
|
- |
|
|
955 |
|
|
- |
|
|
829 |
|
|
126 |
|
|||||
Lease impairment(5) |
|
- |
|
|
(606 |
) |
|
606 |
|
|
- |
|
|
526 |
|
|
|
80 |
|
|
|||
Termination of distributor agreement(6) |
|
- |
|
|
970 |
|
|
(970 |
) |
|
- |
|
|
(139 |
) |
|
(831 |
) |
|||||
Contingent consideration fair value adjustments(7) |
|
- |
|
|
41,048 |
|
|
(41,048 |
) |
|
- |
|
|
(1,591 |
) |
|
(39,457 |
) |
|||||
$ |
735,636 |
|
$ |
513,056 |
|
$ |
168,154 |
|
$ |
37,297 |
|
$ |
31,495 |
|
|
$ |
99,362 |
|
|||||
Adjusted gross profit % |
|
56.3 |
% |
||||||||||||||||||||
Amortization(8) |
$ |
6,000 |
|
|
(28,629 |
) |
|
34,629 |
|
|
(5,700 |
) |
|
9,775 |
|
|
30,554 |
|
|
||||
As adjusted |
$ |
484,427 |
|
$ |
202,783 |
|
$ |
31,597 |
|
$ |
41,270 |
|
24.1 |
% |
$ |
129,916 |
|
$ |
4.17 |
|
|||
% of sales |
|
37.1 |
% |
|
15.5 |
% |
|||||||||||||||||
Shares |
|
31,150 |
|||||||||||||||||||||
Convertible note hedges(9) |
|
- |
|
||||||||||||||||||||
Adjusted diluted shares |
|
31,150 |
|
Reconciliation of Reported Net Income to Adjusted Net Income |
|||||||||||||||||||||||
(in thousands, except per share amounts, unaudited) |
|||||||||||||||||||||||
Year Ended December 31, 2023 |
|||||||||||||||||||||||
Gross Profit |
Selling & Administrative Expense |
Operating Income |
Interest
|
Tax
|
Effective Tax Rate |
Net Income |
Diluted EPS |
||||||||||||||||
As reported |
$ |
676,245 |
|
$ |
503,040 |
|
$ |
120,603 |
|
$ |
39,775 |
|
$ |
16,369 |
|
20.3 |
% |
$ |
64,459 |
|
$ |
2.04 |
|
% of sales |
|
54.3 |
% |
|
40.4 |
% |
|
9.7 |
% |
||||||||||||||
Restructuring and related costs(2) |
|
2,035 |
|
|
(1,578 |
) |
|
3,613 |
|
|
- |
|
|
930 |
|
|
2,683 |
|
|
||||
Termination of distributor agreements(6) |
|
- |
|
|
(2,098 |
) |
|
2,098 |
|
|
- |
|
|
417 |
|
1,681 |
|
|
|||||
Contingent consideration fair value adjustments(7) |
|
- |
|
|
2,421 |
|
|
(2,421 |
) |
|
- |
|
|
2,037 |
|
|
(4,458 |
) |
|
||||
Acquisition and integration costs(10) |
|
8,617 |
|
|
(752 |
) |
|
9,369 |
|
|
- |
|
|
1,207 |
|
|
8,162 |
|
|||||
Software implementation costs(11) |
|
- |
|
|
(6,056 |
) |
|
6,056 |
|
|
- |
|
|
1,453 |
|
|
|
4,603 |
|
|
|||
$ |
686,897 |
|
$ |
494,977 |
|
$ |
139,318 |
|
$ |
39,775 |
|
$ |
22,413 |
|
$ |
77,130 |
|
||||||
Adjusted gross profit % |
|
55.2 |
% |
|
|||||||||||||||||||
Amortization(8) |
$ |
6,000 |
|
|
(29,068 |
) |
|
35,068 |
|
|
(6,058 |
) |
|
9,969 |
|
|
|
31,157 |
|
|
|||
As adjusted |
$ |
465,909 |
|
$ |
174,386 |
|
$ |
33,717 |
|
$ |
32,382 |
|
23.0 |
% |
$ |
108,287 |
|
$ |
3.45 |
|
|||
% of sales |
|
|
37.4 |
% |
|
14.0 |
% |
|
|
|
|
|
|||||||||||
|
|
|
|
|
|
|
|||||||||||||||||
Shares |
|
|
|
|
|
|
|
|
31,548 |
|
|||||||||||||
Convertible note hedges(9) |
|
|
|
|
|
|
|
|
(142 |
) |
|||||||||||||
Adjusted diluted shares |
|
|
|
|
|
|
|
|
31,406 |
|
(1) In 2024, the Company incurred costs for third party services pertaining to potential issues with certain royalty payments to design surgeons. |
(2) In 2024, the Company incurred severance costs related to the elimination of certain positions. In 2023, the Company incurred consulting fees related to an operational cost improvement initiative and severance related to the elimination of certain positions. |
(3) In 2024, the Company wrote off inventory, tooling and equipment related to the cancellation of a planned new product line. |
(4) In 2024, the Company's incurred costs due to the impact of Hurricane Milton on our |
(5) In 2024, the Company recorded lease impairment expense related to a storage facility no longer utilized. |
(6) In 2024, the Company recorded an accrual adjustment related to the previous termination of a distributor agreement. In 2023, the Company incurred costs related to the termination of distributor agreements. |
(7) In 2024 and 2023, the Company incurred income/(expense) related to the fair value adjustments of contingent consideration. |
(8) Includes amortization of intangible assets and deferred financing fees. |
(9) Non-GAAP adjusted dilutive weighted average shares outstanding exclude dilution that is expected to be offset by the Company’s convertible notes hedge transactions. |
(10) In 2023, the Company incurred charges related to the amortization of inventory step-up to fair value associated with the acquisition of In2Bones Global, Inc., and integration costs and professional fees associated with the acquisitions of In2Bones Global, Inc. and Biorez, Inc. |
(11) In 2023, the Company incurred additional freight, labor and travel costs as well as professional fees related to the implementation of a warehouse management software. |
Reconciliation of Reported Net Income to EBITDA & Adjusted EBITDA |
|||||||||||||||
(in thousands, unaudited) |
|||||||||||||||
|
|
|
|
|
|||||||||||
|
Three Months Ended |
|
Year Ended |
||||||||||||
|
December 31, |
|
December 31, |
||||||||||||
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
|
|
|
|
|
|
|
|
||||||||
Net income |
$ |
33,754 |
|
|
$ |
33,071 |
|
|
$ |
132,423 |
|
|
$ |
64,459 |
|
Provision for income taxes |
|
9,888 |
|
|
|
7,611 |
|
|
|
30,606 |
|
|
|
16,369 |
|
Interest expense |
|
8,857 |
|
|
|
9,505 |
|
|
|
37,297 |
|
|
|
39,775 |
|
Depreciation |
|
4,199 |
|
|
|
4,052 |
|
|
|
16,605 |
|
|
|
16,200 |
|
Amortization |
|
13,807 |
|
|
|
13,950 |
|
|
|
55,252 |
|
|
|
55,674 |
|
EBITDA |
$ |
70,505 |
|
|
$ |
68,189 |
|
|
$ |
272,183 |
|
|
$ |
192,477 |
|
|
|
|
|
|
|
|
|
||||||||
Stock based compensation |
|
6,222 |
|
|
|
5,923 |
|
|
|
25,558 |
|
|
|
24,257 |
|
Contingent consideration fair value adjustments |
|
1,219 |
|
|
|
(9,370 |
) |
|
|
(41,048 |
) |
|
|
(2,421 |
) |
Hurricane impact |
|
955 |
|
|
|
- |
|
|
|
955 |
|
|
|
- |
|
Lease impairment |
|
606 |
|
|
|
- |
|
|
|
606 |
|
|
|
- |
|
Legal matters |
|
531 |
|
|
|
- |
|
|
|
5,097 |
|
|
|
- |
|
Restructuring and related costs |
|
- |
|
|
|
- |
|
|
|
1,774 |
|
|
|
3,613 |
|
Asset impairment costs |
|
- |
|
|
|
- |
|
|
|
1,414 |
|
|
|
- |
|
Termination of distributor agreements |
|
- |
|
|
|
- |
|
|
|
(970 |
) |
|
|
2,098 |
|
Acquisition and integration costs |
|
- |
|
|
|
2,154 |
|
|
|
- |
|
|
|
9,369 |
|
Software implementation costs |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
6,056 |
|
Adjusted EBITDA |
$ |
80,038 |
|
|
$ |
66,896 |
|
|
$ |
265,569 |
|
|
$ |
235,449 |
|
|
|
|
|
|
|
|
|
||||||||
|
|
|
|
|
|
|
|
||||||||
EBITDA Margin |
|
|
|
|
|
|
|
||||||||
EBITDA |
|
20.4 |
% |
|
|
20.9 |
% |
|
|
20.8 |
% |
|
|
15.5 |
% |
Adjusted EBITDA |
|
23.1 |
% |
|
|
20.5 |
% |
|
|
20.3 |
% |
|
|
18.9 |
% |
About CONMED Corporation
CONMED is a medical technology company that provides devices and equipment for surgical procedures. The Company’s products are used by surgeons and other healthcare professionals in a variety of specialties including orthopedics, general surgery, gynecology, thoracic surgery, and gastroenterology. For more information, visit www.conmed.com.
Forward-Looking Statements
This press release and associated conference call may contain forward-looking statements based on certain assumptions and contingencies that involve risks and uncertainties, which could cause actual results, performance, or trends to differ materially from those expressed in the forward-looking statements herein or in previous disclosures. For example, in addition to general industry and economic conditions, factors that could cause actual results to differ materially from those in the forward-looking statements may include, but are not limited to the risk factors discussed in the Company's Annual Report on Form 10-K for the full year ended December 31, 2023, listed under the heading Forward-Looking Statements in the Company’s most recently filed Form 10-Q and other risks and uncertainties, which may be detailed from time to time in reports filed by CONMED with the SEC. Any and all forward-looking statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 and relate to the Company’s performance on a going-forward basis. The Company believes that all forward-looking statements made by it have a reasonable basis, but there can be no assurance that management’s expectations, beliefs or projections as expressed in the forward-looking statements will actually occur or prove to be correct.
Supplemental Information - Reconciliation of GAAP to Non-GAAP Financial Measures
The Company supplements the reporting of its financial information determined under generally accepted accounting principles in
Net sales on a constant currency basis is a non-GAAP measure. The Company analyzes net sales on a constant currency basis to better measure the comparability of results between periods. To measure percentage sales growth in constant currency, the Company removes the impact of changes in foreign currency exchange rates that affect the comparability and trend of net sales. To measure earnings performance on a consistent and comparable basis, the Company excludes certain items that affect the comparability of operating results and the trend of earnings. These adjustments are irregular in timing, may not be indicative of past and future performance and are therefore excluded to allow investors to better understand underlying operating trends.
Because non-GAAP financial measures are not standardized, it may not be possible to compare these financial measures with other companies' non-GAAP financial measures having the same or similar names. These adjusted financial measures should not be considered in isolation or as a substitute for reported sales growth, gross profit, cost of sales, selling and administrative expenses, operating income, interest expense, income tax expense, effective income tax rate, net income, diluted shares and diluted net earnings per share, the most directly comparable GAAP financial measures. These non-GAAP financial measures are an additional way of viewing aspects of the Company’s operations that, when viewed with GAAP results and the reconciliations to corresponding GAAP financial measures above, provide a more complete understanding of the business. The Company strongly encourages investors and shareholders to review its financial statements and publicly filed reports in their entirety and not to rely on any single financial measure.
We are unable to present a quantitative reconciliation of our expected diluted net earnings per share to expected adjusted diluted net earnings per share as we are unable to predict with reasonable certainty and without unreasonable effort the impact and timing of acquisition, integration and other charges. The financial impact of these items is uncertain and is dependent on various factors, including timing, and could be material to our consolidated condensed statements of income.
View source version on businesswire.com: https://www.businesswire.com/news/home/20250205642486/en/
CONMED Corporation
Todd W. Garner
Chief Financial Officer
727-214-2975
ToddGarner@conmed.com
Source: CONMED Corporation
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