The changes in the net carrying amount of goodwill for the years ended December 31, are as follows: Amortization expense related to intangible assets which are subject to amortization totaled $35.2 million, $33.7 million and $33.3 million for the years ending December 31, 2023, 2022 and 2021, respectively, and is included as a reduction of revenue (for amortization related to our sales representation, marketing and promotional rights) and in selling and administrative expense (for all other intangible asset ...

CONMED Corporation (CNMD) delivered adjusted earnings per share (EPS) of $1.06 in fourth-quarter 2023, which missed the Zacks Consensus Estimate of $1.11 by 4.5%. However, the bottom line improved 152.4% from the year-ago quarter’s level.GAAP EPS for the quarter was $1.05 compared with 86 cents per share in the year-ago period.The company’s shares have lost 28.0% in the past six months compared with the industry’s fall of 2.2%. The broader S&P 500 Index has gained 7% in the same time frame.Image Source: Zac ...

Financial Data and Key Metrics Changes - Total sales for Q4 2023 reached $327 million, a year-over-year increase of 30% as reported and 32% in constant currency [4][10] - For the full year 2023, total sales were $1.245 billion, representing a year-over-year increase of 19% as reported and 21% in constant currency [34][113] - Adjusted net income for Q4 was $33.2 million, an increase of 156.5% compared to Q4 2022, with adjusted diluted earnings per share of $1.06, up 152.4% year-over-year [10][110] - Adjusted gross margin for Q4 was 56.4%, a 50-basis-point sequential improvement over Q3 and an increase of 220 basis points from the prior-year quarter [114] - The adjusted effective tax rate for the full year was 23.0% [39] Business Line Data and Key Metrics Changes - General Surgery revenue increased 41.7% in Q4, with US revenue growing 47.6% and international revenue increasing 27.8% [7] - Orthopedics revenue grew 17.7% for the full year, with US sales increasing 15.2% and international sales rising 19.2% [37] - The BioBrace platform exceeded expectations and is expected to continue strong growth as market reach expands [5][143] Market Data and Key Metrics Changes - The company reported strong optimism across its categories of Orthopedics and General Surgery, with a higher concentration of sales outside the US compared to most med-tech companies [17] - The company expects revenue growth in 2024 to be in the range of $1.34 billion to $1.365 billion, representing year-over-year growth of approximately 8% to 10% [11] Company Strategy and Development Direction - The strategic outlook for the company remains strong, focusing on delivering clinically differentiated solutions across its business [35] - The company aims for 60% gross margins by the end of 2025, with expectations of being close to that milestone in 2026 if not achieved by 2025 [12][55] - The company is actively working on integrating acquisitions and expanding its product portfolio through both organic and inorganic growth [5][35] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to deliver top-line growth and leveraged earnings growth, driven by a talented global team and an innovative high-growth portfolio [35][120] - The company acknowledged challenges in the Orthopedics business due to supply issues but expects improvements as integration processes stabilize [46][80] - Management remains cautious about potential competitive threats but believes the impact on the AirSeal product will be minimal [117][90] Other Important Information - Cash flow from operations for Q4 was $56.4 million, a record for the company, compared to cash flow used for operations of $11.6 million in Q4 2022 [40] - The company expects R&D expenses in 2024 to be between 4% and 4.5% of sales [42] Q&A Session Summary Question: Concerns about Q4 performance and future growth - Management acknowledged that Q4 missed expectations but emphasized that the overall business remains healthy and is expected to return to double-digit growth [20][54] Question: M&A strategy and leverage - Management indicated that they are continuously looking for M&A opportunities but noted that the bar for acquisitions is higher due to market conditions [21][51] Question: Competitive landscape and product performance - Management reassured that the BioBrace product is performing well and is expected to grow, despite some near-term challenges in the Foot and Ankle segment [48][143] Question: Supply chain issues and their impact - Management clarified that supply chain disruptions have affected the Orthopedics business but are improving, with expectations to return to normal operations by Q2 2024 [46][80] Question: Guidance for 2024 and market expectations - Management provided guidance for 2024, expecting revenue growth of 8% to 10%, while acknowledging potential headwinds from competitive products [11][48]

Conmed (CNMD) reported $327.05 million in revenue for the quarter ended December 2023, representing a year-over-year increase of 30.4%. EPS of $1.06 for the same period compares to $0.42 a year ago.The reported revenue represents a surprise of -1.77% over the Zacks Consensus Estimate of $332.94 million. With the consensus EPS estimate being $1.11, the EPS surprise was -4.51%.While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine ...

Conmed (CNMD) came out with quarterly earnings of $1.06 per share, missing the Zacks Consensus Estimate of $1.11 per share. This compares to earnings of $0.42 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of -4.51%. A quarter ago, it was expected that this medical technology company would post earnings of $0.83 per share when it actually produced earnings of $0.90, delivering a surprise of 8.43%.Over the last four quarters, the ...

2024 Financial Guidance Revenue $1.340 B to $1.365 B, ~8% to ~10% growth Q1: ~3% to ~5% growth* Q2: Mid-to-high-single-digit growth Adjusted SG&A Expense 60 to 80 basis point improvement as a percent of sales Q4 2023 Earnings Call 10 Environmental Social Governance | --- | --- | --- | --- | --- | |-------|--------------------------------------------------|------------------------------------------------------------------------------|-------|------------------------------------------------------------------- ...

Key PointsCONMED shares dove 10% last week, retreating below the $100.00 level in an apparent bout of profit taking on one of the market’s hottest groups.The company is expected to have generated approximately $332 million in fourth quarter sales with EPS forecast to jump 164% year-over-year to $1.11.Even if the "Ozempic effect" is large, it will likely have an insignificant impact on CONMED’s overall financial results since the company provides products for many procedures other than bariatric surgery.5 st ...

Wall Street analysts expect Conmed (CNMD) to post quarterly earnings of $1.11 per share in its upcoming report, which indicates a year-over-year increase of 164.3%. Revenues are expected to be $332.94 million, up 32.7% from the year-ago quarter.The current level reflects no revision in the consensus EPS estimate for the quarter over the past 30 days. This demonstrates how the analysts covering the stock have collectively reappraised their initial projections over this period.Before a company announces its e ...

Financial Data and Key Metrics Changes - Total sales for Q3 2023 were $304.6 million, representing a year-over-year increase of 10.7% [34] - GAAP net income totaled $15.8 million, a decline of 65.7% compared to $46.2 million in Q3 2022 [13] - Adjusted net income increased 19.5% year-over-year to $28.4 million, with adjusted diluted earnings per share of $0.90, up 16.9% year-over-year [13][21] - Cash flow from operations was $46.1 million, compared to $25.9 million in Q3 2022 [22] Business Line Data and Key Metrics Changes - U.S. sales increased 9.5% year-over-year, while international sales grew 15.1% [17] - Worldwide Orthopedics revenue grew 6.4%, with U.S. Orthopedic sales increasing 1.3% and international sales up 9.7% [17] - General Surgery revenue increased 16.0%, with U.S. revenue growing 12.9% and international revenue rising 23.8% [18] Market Data and Key Metrics Changes - The company experienced supply constraints in its legacy orthopedic business, impacting revenue [17] - An industry-wide reagent supply disruption from its allograft tissue partner, MTF, is expected to affect revenue and gross margins into Q4 2023 [41] Company Strategy and Development Direction - The company remains focused on innovation and expanding its product portfolio, particularly in high-growth areas [12][27] - The goal is to achieve gross margins around 60% by the end of 2025, with a commitment to improving operating margins through SG&A leverage [43][29] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in finishing 2023 strongly and starting 2024 with positive momentum despite macroeconomic challenges [36][37] - The company anticipates continued double-digit organic growth, assuming a healthy medtech market [68] Other Important Information - The company has seen a positive response to its Biorez acquisition and is focused on expanding its market presence [12] - The cash balance at the end of the quarter was $30.5 million, with a leverage ratio of 4.8 times [45] Q&A Session Summary Question: Factors influencing guidance range - Management indicated that geopolitical noise and supply disruptions are factors affecting guidance, but they feel confident about Q4 performance [25] Question: Free cash flow expectations - The company expects free cash flow to grow with earnings, estimating around $110 million for 2023 [56] Question: Impact of supply issues on procedures - Management noted that some procedures may be deferred or use alternative materials due to supply constraints [87] Question: Competitive landscape for AirSeal - Management believes AirSeal is uniquely positioned in the market and does not foresee any immediate threats from competitors [69] Question: Capital spending environment - The company views the capital market as viable and has not seen material slowdowns, despite competition [72] Question: Gross margin expansion expectations - Management expects gross margins to improve, with a target of 60% by the end of 2025, driven by a favorable mix of high-growth products [81][83]

Curt R. Hartman Chair of the Board, President, and Chief Executive Officer Todd W. Garner Executive Vice President and Chief Financial Officer October 25, 2023 This presentation 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 forwardlooking statements herein or in previous disclosures. For example, in addition to general industr ...