CONMED Corporation (NYSE: CNMD) today announced financial
results for the fourth quarter and full-year ended December 31,
2024.
Fourth Quarter 2024 Highlights
- Sales of $345.9 million increased 5.8% year over year as
reported and 6.0% in constant currency.
- Domestic revenue increased 6.8% year over year.
- International revenue increased 4.4% year over year as reported
and 5.0% in constant currency.
- Diluted net earnings per share (GAAP) were $1.08 compared to
diluted net earnings per share (GAAP) of $1.05 in the fourth
quarter of 2023.
- Adjusted diluted net earnings per share(1) were $1.34, an
increase of 26.4% compared to the fourth quarter of 2023.
Full-Year 2024 Highlights
- Sales of $1,307.0 increased 5.0% year over year as reported and
5.3% in constant currency.
- Domestic revenue increased 6.9% year over year.
- International revenue increased 2.6% year over year as reported
and 3.4% in constant currency.
- Diluted net earnings per share (GAAP) were $4.25 compared to
diluted net earnings per share (GAAP) of $2.04 in 2023.
- Adjusted diluted net earnings per share(1) were $4.17, an
increase of 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
$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
(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 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.
(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 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
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 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 and the other adjusted measures described above
are important indicators of its operations because they exclude
items that may not be indicative of, or are unrelated to, its core
operating results and provide a baseline for analyzing trends in
the Company’s underlying business. Further, the presentation of
EBITDA is a non-GAAP measurement that management considers useful
for measuring aspects of the Company’s cash flow. Management uses
these non-GAAP financial measures for reviewing the operating
results and analyzing potential future business trends in
connection with its budget process and bases certain management
incentive compensation on these non-GAAP financial measures.
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
CONMED (NYSE:CNMD)
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