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: CONMED Corporation Todd W. Garner Chief Financial Officer 727-214-2975 ToddGarner@conmed.com CONMED Corporation Announces Fourth Quarter and Full-Year 2023 Financial Results Largo, Florida

Key Takeaway: CONMED Corporation (NYSE: CNMD) announced its financial results for the fourth quarter and full-year 2023, reporting record revenues. The company achieved a substantial growth in net sales, with expectations for continued revenue increases in 2024. Additionally, adjusted diluted net earnings per share are projected to see a significant rise of approximately 25% year-over-year. This positive performance highlights the effectiveness of CONMED's global strategy and product offerings in the medical sector.

Market Sentiment Analysis

POSITIVE FACTORS

  • Record revenue reported for both the fourth quarter and full year.
  • Strong year-over-year growth in adjusted diluted net earnings per share projected.
  • Positive growth across various businesses and geographies.
  • Expectations of continued innovation in technology solutions.

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 2023 Financial Results
Largo, Florida, January 31, 2024 -
CONMED Corporation (NYSE: CNMD) today announced financial results for the fourth quarter and full-year ended December 31, 2023.
Fourth Quarter 2023 Highlights
Full-Year 2023 Highlights
"2023 was a great year for CONMED,
and I am proud that our global business delivered record revenue in both the fourth quarter and for the full year," commented Curt
R. Hartman, CONMED's Chair of the Board, President, and Chief Executive Officer. "The balanced growth we saw across our various
businesses and geographies is a testament to the strength of the portfolio that we have built. As we shift our focus to 2024, we are very
excited to continue delivering innovative technology solutions to our customers and patients across both the General Surgery and Orthopedics
The Company expects full-year 2024 reported
revenue between $1.340 billion and $1.365 billion. This represents year-over-year growth of approximately 8% to 10%.
The Company expects full-year 2024 adjusted
diluted net earnings per share(2) in the range of $4.30 to $4.40. This represents year-over-year growth of approximately 25%
The impact of foreign currency exchange
rates in 2024 is expected to be immaterial.
Supplemental Financial Disclosures
reconciliation of reported diluted net earnings (loss) per share to adjusted diluted net earnings per share, a non-GAAP financial measure,
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.
The Company's management will host
a conference call today at 4:30 p.m. ET to discuss its fourth quarter and full-year 2023 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,
2023 2022 2023 2022
Net sales $ 327,045 $ 250,867 $ 1,244,744 $ 1,045,472
Cost of sales 144,870 119,005 568,499 474,227
Gross profit 182,175 131,862 676,245 571,245
% of sales 55.7% 52.6% 54.3% 54.6%
Selling & administrative expense 117,960 120,737 503,040 454,039
Research & development expense 14,028 12,220 52,602 47,152
Income (loss) from operations 50,187 (1,095 ) 120,603 70,054
% of sales 15.3% -0.4% 9.7% 6.7%
Interest expense 9,505 9,443 39,775 28,905
Other expense - - - 112,011
Income (loss) before income taxes 40,682 (10,538 ) 80,828 (70,862 )
Provision (benefit) for income taxes 7,611 (37,122 ) 16,369 9,720
Net income (loss) $ 33,071 $ 26,584 $ 64,459 $ (80,582 )
Basic EPS $ 1.08 $ 0.87 $ 2.10 $ (2.68 )
Diluted EPS 1.05 0.86 2.04 (2.68 )
Basic shares 30,759 30,484 30,668 30,040
Diluted shares 31,502 30,931 31,548 30,040
(in millions, unaudited)
Three Months Ended December 31,
% Change
Domestic International
2023 2022 As Reported Impact of Foreign Currency Constant Currency As Reported As Reported Impact of Foreign Currency Constant Currency
Orthopedic Surgery $ 136.5 $ 115.2 18.5% 0.9% 19.4% 6.0% 27.8% 2.0% 29.8%
General Surgery 190.5 135.7 40.4% 1.3% 41.7% 47.6% 24.4% 3.4% 27.8%
$ 327.0 $ 250.9 30.4% 1.1% 31.5% 33.3% 26.5% 2.5% 29.0%
Single-use Products $ 271.3 $ 211.9 28.1% 1.1% 29.2% 33.1% 20.6% 2.6% 23.2%
Capital Products 55.7 39.0 42.9% 0.9% 43.8% 34.5% 49.3% 1.9% 51.2%
$ 327.0 $ 250.9 30.4% 1.1% 31.5% 33.3% 26.5% 2.5% 29.0%
Domestic $ 190.3 $ 142.8 33.3% 0.0% 33.3%
International 136.7 108.1 26.5% 2.5% 29.0%
$ 327.0 $ 250.9 30.4% 1.1% 31.5%
Year Ended December 31,
% Change
Domestic International
2023 2022 As Reported Impact of Foreign Currency Constant Currency As Reported As Reported Impact of Foreign Currency Constant Currency
Orthopedic Surgery $ 533.1 $ 461.5 15.5% 2.2% 17.7% 15.2% 15.7% 3.5% 19.2%
General Surgery 711.6 584.0 21.9% 1.5% 23.4% 23.4% 18.4% 5.1% 23.5%
$ 1,244.7 $ 1,045.5 19.1% 1.8% 20.9% 20.9% 16.7% 4.2% 20.9%
Single-use Products $ 1,038.5 $ 874.9 18.7% 1.8% 20.5% 21.3% 15.2% 4.3% 19.5%
Capital Products 206.2 170.6 20.9% 1.9% 22.8% 18.5% 22.8% 3.6% 26.4%
$ 1,244.7 $ 1,045.5 19.1% 1.8% 20.9% 20.9% 16.7% 4.2% 20.9%
Domestic $ 700.1 $ 579.0 20.9% 0.0% 20.9%
International 544.6 466.5 16.7% 4.2% 20.9%
$ 1,244.7 $ 1,045.5 19.1% 1.8% 20.9%
Reconciliation of Reported Net Income to Adjusted
(in thousands, except per share amounts, unaudited)
Three Months Ended December 31, 2023
Gross Profit Selling & Administrative Expense Operating Income Interest Expense Tax Expense Effective Tax Rate Net Income Basic EPS Adjustments Diluted EPS
As reported $ 182,175 $ 117,960 $ 50,187 $ 9,505 $ 7,611 18.7% $ 33,071 $ - $ 33,071
% of sales 55.7% 36.1% 15.3%
EPS $ 1.08 $ 1.05
Shares 30,759 743 31,502
Acquisition and integration costs (1) 2,154 - 2,154 - (162 ) 2,316
Contingent consideration fair value adjustment (2) - 9,370 (9,370 ) - 703 (10,073 )
$ 184,329 $ 127,330 $ 42,971 $ 9,505 $ 8,152 $ 25,314
Adjusted gross profit % 56.4%
Amortization (3) $ 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 $ - $ 33,151
% of sales 36.7% 15.8%
Adjusted diluted EPS $ 1.06
Shares 30,759 743 31,502
Convertible note hedges (4) (110 )
Adjusted diluted shares 31,392
Three Months Ended December 31, 2022
Gross Profit Selling & Administrative Expense Operating Income (Loss) Interest 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 (5) 1,955 (786 ) 2,741 - 6,029 (3,288 )
Software implementation costs (6) - (6,769 ) 6,769 - 14,889 (8,120 )
Contingent consideration fair value adjustment (2) - (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 (3) $ 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 (4) -
Adjusted diluted shares 30,931
(1) 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. In 2022, the Company incurred
charges related to the amortization of inventory step-up to fair value and consulting fees, legal fees, and other integration costs associated
with the acquisitions of In2Bones Global, Inc. and Biorez, Inc.
(2) In 2023 and 2022, the Company incurred income/(expense)
related to the fair value adjustments of contingent consideration.
(3) Includes amortization of intangible assets and
deferred financing fees.
(4) Non-GAAP adjusted dilutive weighted average shares
outstanding exclude dilution that is expected to be offset by the Company's convertible notes hedge transactions.
(5) In 2022, the Company incurred consulting fees
related to an operational cost improvement initiative and severance related to the elimination of certain positions.
(6) In 2022, the Company incurred incremental freight,
professional fees and other costs related to the implementation of a warehouse management software.
(7) 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
(in thousands, except per share amounts, unaudited)
Year Ended December 31, 2023
Gross Profit Selling & Administrative Expense Operating Income Interest Expense Other Expense Tax Expense Effective Tax Rate Net Income Basic EPS Adjustments Diluted EPS
As reported $ 676,245 $ 503,040 $ 120,603 $ 39,775 $ - $ 16,369 20.3% $ 64,459 $ - $ 64,459
% of sales 54.3% 40.4% 9.7%
EPS $ 2.10 $ 2.04
Shares 30,668 880 31,548
Acquisition and integration costs (1) 8,617 (752 ) 9,369 - - 1,207 8,162
Termination of distributor agreements (2) - (2,098 ) 2,098 - - 417 1,681
Restructuring and related costs (3) 2,035 (1,578 ) 3,613 - - 930 2,683
Software implementation costs (4) - (6,056 ) 6,056 - - 1,453 4,603
Contingent consideration fair value adjustment (5) - 2,421 (2,421 ) - - 2,037 (4,458 )
$ 686,897 $ 494,977 $ 139,318 $ 39,775 $ - $ 22,413 $ 77,130
Adjusted gross profit % 55.2%
Amortization (6) $ 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 $ - $ 108,287
% of sales 37.4% 14.0%
Adjusted diluted EPS $ 3.45
Shares 30,668 880 31,548
Convertible note hedges (7) (142 )
Adjusted diluted shares 31,406
Year Ended December 31, 2022
Gross Profit Selling & Administrative Expense Operating Income Interest Expense Other Expense Tax Expense Effective Tax Rate Net Income (Loss) Basic EPS Adjustments (12) 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 (8) - (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 (9) - - - - (103,125 ) (61,521 ) 164,646
Change in fair value of convertible notes hedges upon settlement (10) - - - - (5,460 ) (3,257 ) 8,717
Loss on early extinguishment of debt (11) - - - - (3,426 ) (2,044 ) 5,470
$ 577,740 $ 433,128 $ 97,460 $ 28,905 $ - $ 15,857 $ 52,698
Adjusted gross profit % 55.3%
Amortization (6) $ 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 (7) (578 )
Adjusted diluted shares 32,118
(1) 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. In 2022, the Company incurred charges
related to the amortization of inventory step-up to fair value and consulting fees, legal fees, and other integration costs associated
with the acquisition of In2Bones Global, Inc. and Biorez, Inc.
(2) In 2023, the Company incurred costs related to
the termination of distributor agreements.
(3) In 2023 and 2022, the Company incurred consulting
fees related to an operational cost improvement initiative and severance related to the elimination of certain positions.
(4) In 2023 and 2022, the Company incurred additional
freight, labor and travel costs as well as professional fees related to the implementation of a warehouse management software.
(5) In 2023 and 2022, the Company incurred income/(expense)
related to the fair value adjustments of contingent consideration.
(6) Includes amortization of intangible assets and
deferred financing fees.
(7) Non-GAAP adjusted dilutive weighted average shares
outstanding exclude dilution that is expected to be offset by the Company's convertible notes hedge transactions.
(8) In 2022, the Company incurred costs related to
(9) 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.
(10) 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%
(11) 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.
(12) 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,
2023 2022 2023 2022
Net income (loss) $ 33,071 $ 26,584 $ 64,459 $ (80,582 )
Provision (benefit) for income taxes 7,611 (37,122 ) 16,369 9,720
Interest expense 9,505 9,443 39,775 28,905
Depreciation 4,052 4,026 16,200 16,055
Amortization 13,950 13,709 55,674 53,464
EBITDA $ 68,189 $ 16,640 $ 192,477 $ 27,562
Stock based compensation 5,923 5,758 24,257 21,729
Acquisition and integration costs 2,154 5,853 9,369 14,603
Contingent consideration fair value adjustment (9,370 ) 2,518 (2,421 ) 2,518
Termination of distributor agreements - - 2,098 -
Restructuring and related costs - 2,741 3,613 2,741
Software implementation costs - 6,769 6,056 6,769
Legal matters - - - 775
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
Adjusted EBITDA $ 66,896 $ 40,279 $ 235,449 $ 188,708
EBITDA Margin
EBITDA 20.9% 6.6% 15.5% 2.6%
Adjusted EBITDA 20.5% 16.1% 18.9% 18.1%
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,

Frequently Asked Questions

What revenue did CONMED report for Q4 2023?

CONMED reported net sales of $327.0 million for Q4 2023.

How did CONMED's 2023 revenue compare to 2022?

In 2023, CONMED's revenue increased to $1.244 billion from $1.045 billion in 2022.

What is CONMED's 2024 revenue forecast?

CONMED expects 2024 revenue between $1.340 billion and $1.365 billion.

What was the net income for CONMED in 2023?

CONMED reported a net income of $64.5 million for the year 2023.

What growth did CONMED expect in 2024 earnings per share?

CONMED anticipates a 25% growth in adjusted diluted EPS for 2024.

Last updated: Jan 31, 2024