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 2024 Financial Results
Largo, Fla. - February 5, 2025 -
CONMED Corporation (NYSE: CNMD) today announced financial results for the fourth quarter and full-year ended December 31, 2024.
Fourth Quarter 2024 Highlights
Full-Year 2024 Highlights
"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."
The Company expects full-year 2025 reported
revenue between $1.344 billion and $1.372 billion. This represents year over year constant currency growth of approximately 4% to 6% and
approximately 100 basis points to 120 basis points of currency headwind.
The Company expects full-year 2025 adjusted
diluted net earnings per share(2) in the range of $4.25 to $4.40. This includes a currency headwind of approximately $0.15
to $0.20. This guidance excludes any potential impact from the recently announced tariffs.
Supplemental Financial Disclosures
reconciliation of reported diluted net earnings per share to adjusted diluted net earnings per share, a non-GAAP financial measure, appears
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 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 |
(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
(in thousands, except per share amounts, unaudited)
| Three Months Ended December 31, 2024 | ||||||||||||||||||||||||||||||||
| Gross Profit | Selling & Administrative Expense | Operating Income | Interest Expense | Tax Expense | 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 Expense | Tax Expense | 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 Largo, FL facility. These costs were mainly comprised of emergency pay to employees
and plant underutilization due to abnormally low production.
(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.
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
(in thousands, except per share amounts, unaudited)
| Year Ended December 31, 2024 | ||||||||||||||||||||||||||||||||
| Gross Profit | Selling & Administrative Expense | Operating Income | Interest Expense | Tax Expense | 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 Expense | Tax Expense | 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 Largo, FL facility. These costs were mainly comprised of emergency pay to employees and plant underutilization due to abnormally low production.
(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
Reconciliation of Reported Net Income to 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 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 income tax
expense; adjusted effective income tax rate; adjusted net income, adjusted diluted shares and adjusted diluted net earnings per share
(EPS). The Company believes that these non-GAAP measures provide meaningful information to assist investors and shareholders in understanding
its financial results and assessing its prospects for future performance. Management believes percentage sales growth in constant currency