Full Press Release Details
| NEWS RELEASE | |
| CONTACT : | |
| CONMED Corporation | |
| Todd W. Garner | |
| Chief Financial Officer | |
| 727-214-2975 | |
| ToddGarner@conmed.com |
CONMED Corporation Announces Fourth Quarter and
Full-Year 2022 Financial Results
Largo, Florida, February 2, 2023 -
CONMED Corporation (NYSE: CNMD) today announced financial results for the fourth quarter and full-year ended December 31, 2022.
Fourth Quarter 2022 Highlights
Full-Year 2022 Highlights
"We are disappointed that our fourth quarter
results were significantly disrupted by the implementation of a new warehouse management system. We are shipping at or above historical
daily rates, and we continue to work diligently to increase our efficiency and capacity," commented Curt R. Hartman, CONMED's
Chair of the Board, President, and Chief Executive Officer. "I am pleased with our team's accomplishments in 2022, including
the acquisitions of In2Bones and Biorez, the closing of our convertible senior notes offering, and the continued work on new product innovation
across the company. We enter 2023 focused on execution and delivery of revenue and earnings growth."
The Company expects full-year 2023 reported revenue
between $1.170 billion and $1.220 billion, which includes expected headwind from foreign exchange between 150 and 200 basis
points. Adjusted diluted net earnings per share(2) is expected to be in the range of $3.20 to $3.45, which
includes expected headwind from foreign exchange between $0.20 and $0.25.
Supplemental Financial Disclosures
(1) A reconciliation of reported diluted
net income (loss) 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,
The Company's management will host a conference call today at 4:30
p.m. ET to discuss its fourth quarter and full-year 2022 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 (Loss) | ||||||||||||||||
| (in thousands except per share amounts, unaudited) | ||||||||||||||||
| Three Months Ended | Year Ended | |||||||||||||||
| December 31, | December 31, | |||||||||||||||
| 2022 | 2021 | 2022 | 2021 | |||||||||||||
| Net sales | $ | 250,867 | $ | 273,971 | $ | 1,045,472 | $ | 1,010,635 | ||||||||
| Cost of sales | 119,005 | 118,115 | 474,227 | 442,599 | ||||||||||||
| Gross profit | 131,862 | 155,856 | 571,245 | 568,036 | ||||||||||||
| % of sales | 52.6% | 56.9% | 54.6% | 56.2% | ||||||||||||
| Selling & administrative expense | 120,737 | 107,279 | 454,039 | 414,754 | ||||||||||||
| Research & development expense | 12,220 | 11,361 | 47,152 | 43,565 | ||||||||||||
| Income (loss) from operations | (1,095 | ) | 37,216 | 70,054 | 109,717 | |||||||||||
| % of sales | -0.4% | 13.6% | 6.7% | 10.9% | ||||||||||||
| Interest expense | 9,443 | 7,569 | 28,905 | 35,485 | ||||||||||||
| Other expense | - | - | 112,011 | 1,127 | ||||||||||||
| Income (loss) before income taxes | (10,538 | ) | 29,647 | (70,862 | ) | 73,105 | ||||||||||
| Provision (benefit) for income taxes | (37,122 | ) | 5,203 | 9,720 | 10,563 | |||||||||||
| Net income (loss) | $ | 26,584 | $ | 24,444 | $ | (80,582 | ) | $ | 62,542 | |||||||
| Basic EPS | $ | 0.87 | $ | 0.83 | $ | (2.68 | ) | $ | 2.14 | |||||||
| Diluted EPS | 0.86 | 0.75 | (2.68 | ) | 1.94 | |||||||||||
| Basic shares | 30,484 | 29,349 | 30,040 | 29,162 | ||||||||||||
| Diluted shares | 30,931 | 32,769 | 30,040 | 32,216 |
| Sales Summary | ||||||||||||||||||||||||||||||||||||
| (in millions, unaudited) | ||||||||||||||||||||||||||||||||||||
| Three Months Ended December 31, | ||||||||||||||||||||||||||||||||||||
| % Change | ||||||||||||||||||||||||||||||||||||
| Domestic | International | |||||||||||||||||||||||||||||||||||
| 2022 | 2021 | As Reported | Impact of Foreign Currency | Constant Currency | As Reported | As Reported | Impact of Foreign Currency | Constant Currency | ||||||||||||||||||||||||||||
| Orthopedic Surgery | $ | 115.2 | $ | 117.6 | -2.0% | 1.7% | -0.3% | 15.0% | -11.7% | 2.7% | -9.0% | |||||||||||||||||||||||||
| General Surgery | 135.7 | 156.4 | -13.2% | 1.2% | -12.0% | -11.5% | -16.9% | 3.8% | -13.1% | |||||||||||||||||||||||||||
| $ | 250.9 | $ | 274.0 | -8.4% | 1.4% | -7.0% | -3.9% | -13.8% | 3.2% | -10.6% | ||||||||||||||||||||||||||
| Single-use Products | $ | 211.9 | $ | 222.8 | -4.9% | 1.4% | -3.5% | 1.1% | -12.6% | 3.3% | -9.3% | |||||||||||||||||||||||||
| Capital Products | 39.0 | 51.2 | -23.7% | 1.5% | -22.2% | -29.6% | -18.4% | 2.8% | -15.6% | |||||||||||||||||||||||||||
| $ | 250.9 | $ | 274.0 | -8.4% | 1.4% | -7.0% | -3.9% | -13.8% | 3.2% | -10.6% | ||||||||||||||||||||||||||
| Domestic | $ | 142.8 | $ | 148.6 | -3.9% | 0.0% | -3.9% | |||||||||||||||||||||||||||||
| International | 108.1 | 125.4 | -13.8% | 3.2% | -10.6% | |||||||||||||||||||||||||||||||
| $ | 250.9 | $ | 274.0 | -8.4% | 1.4% | -7.0% |
| Year Ended December 31, | ||||||||||||||||||||||||||||||||||||
| % Change | ||||||||||||||||||||||||||||||||||||
| Domestic | International | |||||||||||||||||||||||||||||||||||
| 2022 | 2021 | As Reported | Impact of Foreign Currency | Constant Currency | As Reported | As Reported | Impact of Foreign Currency | Constant Currency | ||||||||||||||||||||||||||||
| Orthopedic Surgery | $ | 461.5 | $ | 438.4 | 5.3% | 1.2% | 6.5% | 9.2% | 3.0% | 2.0% | 5.0% | |||||||||||||||||||||||||
| General Surgery | 584.0 | 572.2 | 2.1% | 1.0% | 3.1% | 3.0% | 0.0% | 3.2% | 3.2% | |||||||||||||||||||||||||||
| $ | 1,045.5 | $ | 1,010.6 | 3.4% | 1.2% | 4.6% | 4.8% | 1.8% | 2.5% | 4.3% | ||||||||||||||||||||||||||
| Single-use Products | $ | 874.9 | $ | 820.1 | 6.7% | 1.1% | 7.8% | 8.3% | 4.5% | 2.6% | 7.1% | |||||||||||||||||||||||||
| Capital Products | 170.6 | 190.5 | -10.5% | 1.1% | -9.4% | -13.7% | -7.6% | 2.0% | -5.6% | |||||||||||||||||||||||||||
| $ | 1,045.5 | $ | 1,010.6 | 3.4% | 1.2% | 4.6% | 4.8% | 1.8% | 2.5% | 4.3% | ||||||||||||||||||||||||||
| Domestic | $ | 579.0 | $ | 552.5 | 4.8% | 0.0% | 4.8% | |||||||||||||||||||||||||||||
| International | 466.5 | 458.1 | 1.8% | 2.5% | 4.3% | |||||||||||||||||||||||||||||||
| $ | 1,045.5 | $ | 1,010.6 | 3.4% | 1.2% | 4.6% |
Reconciliation of Reported Net Income to Adjusted Net Income
(in thousands, except per share amounts, unaudited)
| Three Months Ended December 31, 2022 | ||||||||||||||||||||||||||||||||||||||||||||
| Gross Profit | Selling & Administrative Expense | Operating Income (Loss) | Interest Expense | Other Expense | Tax Expense/ (Benefit) | Effective Tax Rate | Net Income | Basic EPS | Adjustments (7) | Diluted EPS | ||||||||||||||||||||||||||||||||||
| As reported | $ | 131,862 | $ | 120,737 | $ | (1,095 | ) | $ | 9,443 | $ | - | $ | (37,122 | ) | 352.3% | $ | 26,584 | $ | - | $ | 26,584 | |||||||||||||||||||||||
| % of sales | 52.6% | 48.1% | -0.4% | |||||||||||||||||||||||||||||||||||||||||
| EPS | $ | 0.87 | $ | 0.86 | ||||||||||||||||||||||||||||||||||||||||
| Shares | 30,484 | 447 | 30,931 | |||||||||||||||||||||||||||||||||||||||||
| Acquisition and integration costs (1) | 2,096 | (3,757 | ) | 5,853 | - | - | 12,873 | (7,020 | ) | |||||||||||||||||||||||||||||||||||
| Restructuring and related costs (2) | 1,955 | (786 | ) | 2,741 | - | - | 6,029 | (3,288 | ) | |||||||||||||||||||||||||||||||||||
| Software implementation costs (3) | - | (6,769 | ) | 6,769 | - | - | 14,889 | (8,120 | ) | |||||||||||||||||||||||||||||||||||
| Contingent consideration fair value adjustment (4) | - | (2,518 | ) | 2,518 | - | - | 5,538 | (3,020 | ) | |||||||||||||||||||||||||||||||||||
| $ | 135,913 | $ | 106,907 | $ | 16,786 | $ | 9,443 | $ | - | $ | 2,207 | $ | 5,136 | |||||||||||||||||||||||||||||||
| Adjusted gross profit % | 54.2% | |||||||||||||||||||||||||||||||||||||||||||
| Amortization (5) | $ | 1,500 | (7,228 | ) | 8,728 | (1,506 | ) | - | 2,446 | 7,788 | ||||||||||||||||||||||||||||||||||
| As adjusted | $ | 99,679 | $ | 25,514 | $ | 7,937 | $ | - | $ | 4,653 | 26.5% | $ | 12,924 | $ | - | $ | 12,924 | |||||||||||||||||||||||||||
| % of sales | 39.7% | 10.2% | ||||||||||||||||||||||||||||||||||||||||||
| Adjusted diluted EPS | $ | 0.42 | ||||||||||||||||||||||||||||||||||||||||||
| Shares | 30,484 | 447 | 30,931 | |||||||||||||||||||||||||||||||||||||||||
| Convertible note hedges (6) | - | |||||||||||||||||||||||||||||||||||||||||||
| Adjusted diluted shares | 30,931 |
| Three Months Ended December 31, 2021 | ||||||||||||||||||||||||||||||||||||||||||||
| Gross Profit | Selling & Administrative Expense | Operating Income | Interest Expense | Other Expense | Tax Expense | Effective Tax Rate | Net Income | Basic EPS | Adjustments (7) | Diluted EPS | ||||||||||||||||||||||||||||||||||
| As reported | $ | 155,856 | $ | 107,279 | $ | 37,216 | $ | 7,569 | $ | - | $ | 5,203 | 17.6% | $ | 24,444 | $ | - | $ | 24,444 | |||||||||||||||||||||||||
| % of sales | 56.9% | 39.2% | 13.6% | |||||||||||||||||||||||||||||||||||||||||
| EPS | $ | 0.83 | $ | 0.75 | ||||||||||||||||||||||||||||||||||||||||
| Shares | 29,349 | 3,420 | 32,769 | |||||||||||||||||||||||||||||||||||||||||
| $ | 155,856 | $ | 107,279 | $ | 37,216 | $ | 7,569 | $ | - | $ | 5,203 | $ | 24,444 | |||||||||||||||||||||||||||||||
| Adjusted gross profit % | 56.9% | |||||||||||||||||||||||||||||||||||||||||||
| Amortization (5) | $ | 1,500 | (6,811 | ) | 8,311 | (3,386 | ) | - | 2,744 | 8,953 | ||||||||||||||||||||||||||||||||||
| As adjusted | $ | 100,468 | $ | 45,527 | $ | 4,183 | $ | - | $ | 7,947 | 19.2% | $ | 33,397 | $ | - | $ | 33,397 | |||||||||||||||||||||||||||
| % of sales | 36.7% | 16.6% | ||||||||||||||||||||||||||||||||||||||||||
| Adjusted diluted EPS | $ | 1.07 | ||||||||||||||||||||||||||||||||||||||||||
| Shares | 29,349 | 3,420 | 32,769 | |||||||||||||||||||||||||||||||||||||||||
| Convertible note hedges (6) | (1,446 | ) | ||||||||||||||||||||||||||||||||||||||||||
| Adjusted diluted shares | 31,323 |
(1) In 2022, the Company incurred inventory step-up adjustments associated with the acquisition of In2Bones Global, Inc. and consulting fees, legal fees and other integration related costs associated with the acquisitions of In2Bones Global, Inc. and Biorez, Inc.
(2) In 2022, the Company incurred consulting fees related to an operational cost improvement initiative and severance related to the elimination of certain positions.
(3) In 2022, the Company incurred incremental freight, professional fees and other costs related to the implementation of a warehouse management software.
(4) In 2022, the Company incurred expense related to the fair value adjustment of contingent consideration.
(5) Includes amortization of intangible assets, deferred financing fees and debt discount.
(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.
The Company adopted ASU 2020-06, effective January 1, 2022. As a result of the adoption, the Company is required to compute diluted EPS
using the if-converted method. Under the if-converted method, the numerator is adjusted for interest expense applicable to its convertible
notes (net of tax) and the denominator includes additional common shares assuming conversion premium and principal portion of the notes
(when permitted or required) are settled in shares. Subsequent to June 6, 2022, the Company is required to settle the principal
value of its convertible notes in cash.
Reconciliation of Reported Net Income (Loss) to Adjusted Net Income
thousands, except per share amounts, unaudited)
| Year Ended December 31, 2022 | ||||||||||||||||||||||||||||||||||||||||||||
| Gross Profit | Selling & Administrative Expense | Operating Income | Interest Expense | Other Expense | Tax Expense/ (Benefit) | Effective Tax Rate | Net Income (Loss) | Basic EPS | Adjustments (11) | Diluted EPS | ||||||||||||||||||||||||||||||||||
| As reported | $ | 571,245 | $ | 454,039 | $ | 70,054 | $ | 28,905 | $ | 112,011 | $ | 9,720 | -13.7% | $ | (80,582 | ) | $ | - | $ | (80,582 | ) | |||||||||||||||||||||||
| % of sales | 54.6% | 43.4% | 6.7% | |||||||||||||||||||||||||||||||||||||||||
| EPS | $ | (2.68 | ) | $ | (2.68 | ) | ||||||||||||||||||||||||||||||||||||||
| Shares | 30,040 | - | 30,040 | |||||||||||||||||||||||||||||||||||||||||
| Acquisition and integration costs (1) | 4,540 | (10,063 | ) | 14,603 | - | - | 46,965 | (32,362 | ) | |||||||||||||||||||||||||||||||||||
| Legal matters (2) | - | (775 | ) | 775 | - | - | (462 | ) | 1,237 | |||||||||||||||||||||||||||||||||||
| Restructuring and related costs (3) | 1,955 | (786 | ) | 2,741 | - | - | 6,029 | (3,288 | ) | |||||||||||||||||||||||||||||||||||
| Software implementation costs (4) | - | (6,769 | ) | 6,769 | - | - | 14,889 | (8,120 | ) | |||||||||||||||||||||||||||||||||||
| Contingent consideration fair value adjustment (5) | - | (2,518 | ) | 2,518 | - | - | 5,538 | (3,020 | ) | |||||||||||||||||||||||||||||||||||
| Convertible notes premium on extinguishment (6) | - | - | - | - | (103,125 | ) | (61,521 | ) | 164,646 | |||||||||||||||||||||||||||||||||||
| Change in fair value of convertible notes hedges upon settlement (7) | - | - | - | - | (5,460 | ) | (3,257 | ) | 8,717 | |||||||||||||||||||||||||||||||||||
| Loss on early extinguishment of debt (8) | - | - | - | - | (3,426 | ) | (2,044 | ) | 5,470 | |||||||||||||||||||||||||||||||||||
| $ | 577,740 | $ | 433,128 | $ | 97,460 | $ | 28,905 | $ | - | $ | 15,857 | $ | 52,698 | |||||||||||||||||||||||||||||||
| Adjusted gross profit % | 55.3% | |||||||||||||||||||||||||||||||||||||||||||
| Amortization (9) | $ | 6,000 | (27,791 | ) | 33,791 | (4,910 | ) | - | 9,381 | 29,320 | ||||||||||||||||||||||||||||||||||
| As adjusted | $ | 405,337 | $ | 131,251 | $ | 23,995 | $ | - | $ | 25,238 | 23.5% | $ | 82,018 | $ | 2,978 | $ | 84,996 | |||||||||||||||||||||||||||
| % of sales | 38.8% | 12.6% | ||||||||||||||||||||||||||||||||||||||||||
| Adjusted diluted EPS | $ | 2.65 | ||||||||||||||||||||||||||||||||||||||||||
| Shares | 30,040 | 2,656 | 32,696 | |||||||||||||||||||||||||||||||||||||||||
| Convertible note hedges (10) | (578 | ) | ||||||||||||||||||||||||||||||||||||||||||
| Adjusted diluted shares | 32,118 |
| Year Ended December 31, 2021 | ||||||||||||||||||||||||||||||||||||||||||||
| Gross Profit | Selling & Administrative Expense | Operating Income | Interest Expense | Other Expense | Tax Expense | Effective Tax Rate | Net Income | Basic EPS | Adjustments (11) | Diluted EPS | ||||||||||||||||||||||||||||||||||
| As reported | $ | 568,036 | $ | 414,754 | $ | 109,717 | $ | 35,485 | $ | 1,127 | $ | 10,563 | 14.4% | $ | 62,542 | $ | - | $ | 62,542 | |||||||||||||||||||||||||
| % of sales | 56.2% | 41.0% | 10.9% | |||||||||||||||||||||||||||||||||||||||||
| EPS | $ | 2.14 | $ | 1.94 | ||||||||||||||||||||||||||||||||||||||||
| Shares | 29,162 | 3,054 | 32,216 | |||||||||||||||||||||||||||||||||||||||||
| Restructuring and related costs (3) | - | (414 | ) | 414 | - | - | 109 | 305 | ||||||||||||||||||||||||||||||||||||
| Loss on early extinguishment of debt (8) | - | - | - | - | (1,127 | ) | 281 | 846 | ||||||||||||||||||||||||||||||||||||
| $ | 568,036 | $ | 414,340 | $ | 110,131 | $ | 35,485 | $ | - | $ | 10,953 | $ | 63,693 | |||||||||||||||||||||||||||||||
| Adjusted gross profit % | 56.2% | |||||||||||||||||||||||||||||||||||||||||||
| Amortization (9) | $ | 6,000 | (27,133 | ) | 33,133 | (13,943 | ) | - | 11,394 | 35,682 | ||||||||||||||||||||||||||||||||||
| As adjusted | $ | 387,207 | $ | 143,264 | $ | 21,542 | $ | - | $ | 22,347 | 18.4% | $ | 99,375 | $ | - | $ | 99,375 | |||||||||||||||||||||||||||
| % of sales | 38.3% | 14.2% | ||||||||||||||||||||||||||||||||||||||||||
| Adjusted diluted EPS | $ | 3.21 | ||||||||||||||||||||||||||||||||||||||||||
| Shares | 29,162 | 3,054 | 32,216 | |||||||||||||||||||||||||||||||||||||||||
| Convertible note hedges (10) | (1,273 | ) | ||||||||||||||||||||||||||||||||||||||||||
| Adjusted diluted shares | 30,943 |
In 2022, the Company incurred inventory step-up adjustments associated with the acquisition of In2Bones Global, Inc. and consulting fees,
legal fees and other integration related costs associated with the acquisitions of In2Bones Global, Inc. and Biorez, Inc.
(2) In 2022, the Company incurred costs related to the settlement of litigation.
(3) In 2022, the Company incurred consulting fees related to an operational cost improvement initiative and severance related to the elimination of certain positions. In 2021, the Company incurred restructuring costs related to restructuring of our sales force.
(4) In 2022, the Company incurred incremental freight, professional fees and other costs related to the implementation of a warehouse management software.
(5) In 2022, the Company incurred expense related to the fair value adjustment of contingent consideration.
(6) In 2022, the Company incurred costs related to the conversion premium on the repurchase and extinguishment of $275.0 million of its 2.625% Convertible Notes.
(7) In 2022, the Company incurred costs related to the settlement of convertible notes hedge transactions associated with the repurchase and extinguishment of $275.0 million of its 2.625% Convertible Notes.
(8) In 2022, the Company incurred costs related to the write-off of deferred financing fees associated with the repurchase and extinguishment of $275.0 million of its 2.625% Convertible Notes and term loan paydown. In 2021, the Company incurred costs related to a loss on early extinguishment and third-party fees associated with the seventh amended and restated senior credit agreement.
(9) Includes amortization of intangible assets, deferred financing fees and debt discount.
(10) Non-GAAP adjusted dilutive weighted average shares outstanding exclude dilution that is expected to be offset by the Company's convertible notes hedge transactions.
The Company adopted ASU 2020-06, effective January 1, 2022. As a result of the adoption, the Company is required to compute diluted EPS
using the if-converted method. Under the if-converted method, the numerator is adjusted for interest expense applicable to its convertible
notes (net of tax) and the denominator includes additional common shares assuming conversion premium and principal portion of the notes
(when permitted or required) are settled in shares. Subsequent to June 6, 2022, the Company is required to settle the principal
value of its convertible notes in cash. Adjustments in 2022 are applicable on a non-GAAP basis only since GAAP results are
in a loss position and therefore exclude dilutive potential shares.
Reconciliation of Reported Net Income (Loss) to EBITDA & Adjusted EBITDA
(in thousands, unaudited)
| Three Months Ended | Year Ended | |||||||||||||||
| December 31, | December 31, | |||||||||||||||
| 2022 | 2021 | 2022 | 2021 | |||||||||||||
| Net income (loss) | $ | 26,584 | $ | 24,444 | $ | (80,582 | ) | $ | 62,542 | |||||||
| Provision (benefit) for income taxes | (37,122 | ) | 5,203 | 9,720 | 10,563 | |||||||||||
| Interest expense | 9,443 | 7,569 | 28,905 | 35,485 | ||||||||||||
| Depreciation | 4,026 | 3,975 | 16,055 | 16,494 | ||||||||||||
| Amortization | 13,709 | 13,502 | 53,464 | 54,249 | ||||||||||||
| EBITDA | $ | 16,640 | $ | 54,693 | $ | 27,562 | $ | 179,333 | ||||||||
| Stock based compensation | 5,758 | 4,332 | 21,729 | 16,335 | ||||||||||||
| Acquisition and integration costs | 5,853 | - | 14,603 | - | ||||||||||||
| Legal matters | - | - | 775 | - | ||||||||||||
| Restructuring and related costs | 2,741 | - | 2,741 | 414 | ||||||||||||
| Software implementation costs | 6,769 | - | 6,769 | - | ||||||||||||
| Contingent consideration fair value adjustment | 2,518 | - | 2,518 | - | ||||||||||||
| Convertible notes premium on extinguishment | - | - | 103,125 | - | ||||||||||||
| Change in fair value of convertible notes hedges upon settlement | - | - | 5,460 | - | ||||||||||||
| Loss on early extinguishment of debt | - | - | 3,426 | 1,127 | ||||||||||||
| Adjusted EBITDA | $ | 40,279 | $ | 59,025 | $ | 188,708 | $ | 197,209 | ||||||||
| EBITDA Margin | ||||||||||||||||
| EBITDA | 6.6% | 20.0% | 2.6% | 17.7% | ||||||||||||
| Adjusted EBITDA | 16.1% | 21.5% | 18.1% | 19.5% |
About CONMED Corporation
CONMED is a medical technology company that provides
surgical devices and equipment for minimally invasive procedures. The Company's products are used by surgeons and physicians 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 the 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 risks posed to the Company's
business, financial condition, and results of operations by the COVID-19 global pandemic and the various government responses to the pandemic,
including deferral of surgeries, reductions in hospital and ambulatory surgery center operating volumes, disruption to potential supply
chain reliability; any assumptions underlying any of the foregoing as well as the risk factors discussed in the Company's Annual Report
on Form 10-K for the full year ended December 31, 2021, 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, including the risks associated with the timing and costs related to the software implementation as further described in the risk
factors listed in the Current Report filed on Form 8-K on November 15, 2022. 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 the United States (GAAP) with certain non-GAAP
financial measures, including percentage sales growth in constant currency; adjusted gross profit; cost of sales excluding specified items;
adjusted selling and administrative expenses; adjusted operating income; adjusted interest expense; adjusted other expense; adjusted income
tax expense (benefit); adjusted effective income tax rate; adjusted net income, adjusted diluted shares and adjusted diluted net earnings