CONMED Reports First Quarter 2001 Financial Results

Apr 25, 2001, 01:00 ET from CONMED Corporation

    UTICA, N.Y., April 25 /PRNewswire/ -- CONMED Corporation (Nasdaq:   CNMD)
 today reported financial results for the three months ended March 31, 2001.
     Sales for the first quarter increased to a record $105.9 million from the
 $102.8 million reported in the first quarter last year.  Net income was
 $6.0 million, or $0.39 per diluted share, compared to $7.4 million, or $0.48
 per diluted share, in the first quarter of 2000.  After adding back non-cash
 amortization expenses, net income was $7.8 million, or $.50 per diluted share,
 compared to $9.2 million, or $.59 per diluted share in the same quarter in
 2000.  Foreign currency fluctuations caused sales to be $1.3 million less than
 would have been the case had translation rates remained consistent with first
 quarter 2000 rates.
     Sales in the Company's orthopedic division grew to $70.8 million from
 $68.8 million in the comparable quarter last year.  Arthroscopy sales
 increased to $40.2 million from $39.4 million in the same period last year,
 while Powered Instrument sales grew to $30.6 million from $29.4 million in
 2000's first quarter.
     Commenting on the orthopedic division, Joseph Corasanti, President and
 Chief Operating Officer, stated, "We experienced some positive trends in the
 orthopedic division during the first quarter.  We were especially pleased with
 the sales performance of our single use resection blades, which grew 7%, and
 fluid management products, which stabilized, reversing the negative trends
 experienced last year, and the Hall(R) Surgical branded power instruments
 which grew 11% from last year's first quarter.  An exceptionally strong first
 quarter last year, resulted in modest year over year sales declines in our 3M
 and imaging product lines, both of which met internal expectations."
     Electrosurgery revenues were $15.0 million, an 8% increase from
 $13.9 million in the first quarter last year, reflecting improved generator
 and disposable product sales.  Including the contribution of the Company's
 November 2000 acquisition of the Imagyn disposable product line, Minimally
 Invasive Surgery (MIS) products nearly doubled to $2.5 million.  Excluding the
 contribution of the acquisition, MIS sales grew 13% in the first quarter.
 Sales of patient care products were $17.6 million compared to $18.7 million,
 reflecting an expected decline in surgical suction products.
     Mr. Corasanti commented, "Overall, we are pleased with the solid
 performance of our product lines, many of which exceeded our expectations.
 Our efforts to re-energize sales through increased marketing, R&D and
 exclusive distributor groups are beginning to yield positive results.  In
 addition, our gross margin percentage for the first quarter of 2001 has
 improved to 53.1% from 52.7% a year ago."
     Mr. Corasanti added, "New product launches remain central to our sales
 efforts.  We are pleased by the feedback we have received on the Advantage(TM)
 Powered Instrument system introduced at the American Academy of Orthopedic
 Surgeons conference in February, and are excited about our recently introduced
 Trident(TM) Resection Ablator.  It combines the functionality of three
 arthroscopic tools into one.  Looking ahead, we remain on track to post 6%
 revenue growth for the year, with the orthopedic sales growing approximately
 8%, and a 15% to 20% increase in earnings per share.  Based on current data,
 we anticipate sales in the second quarter to range from $99 million to
 $104 million compared to $98.0 million in the second quarter last year, and
 earnings per share of $0.35 to $0.40 compared to $0.23 last year."
 
     CONMED is a medical technology company specializing in instruments and
 implants for arthroscopic sports medicine, and powered surgical instruments
 for orthopedic, ENT, neuro-surgery, and other surgical specialties.  The
 Company is also a leading developer, manufacturer and supplier of advanced
 medical devices, including RF electrosurgery systems used in all types of
 surgery, ECG electrodes for heart monitoring and minimally invasive surgical
 devices.  Headquartered in Utica, New York, the Company's 2,400 employees
 distribute its products worldwide from eight manufacturing locations.
 
     This press release contains forward-looking statements based on certain
 assumptions and contingencies that involve risks and uncertainties.  The
 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 forward-looking
 statements in this press release involve risks and uncertainties which could
 cause actual results, performance or trends, including the above mentioned
 anticipated revenues and earnings, to differ materially from those expressed
 in the forward-looking statements.  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.
 In addition to general industry and economic conditions, factors that could
 cause actual results to differ materially from those discussed in the forward-
 looking statements in this press release include, but are not limited to: (i)
 the failure of any one or more of the assumptions stated above to prove to be
 correct; (ii) the risks relating to forward-looking statements discussed in
 the Company's Annual Report on Form 10-K for the fiscal year ended December
 31, 2000; (iii) cyclical purchasing patterns from customers, end-users and
 dealers;  (iv) timely release of new products, and acceptance of such new
 products by the market; (v) the introduction of new products by competitors
 and other competitive responses; (vi) the possibility that any new acquisition
 or other transaction may require the Company to reconsider its financial
 assumptions and goals/targets; and/or (vii) the Company's ability to devise
 and execute strategies to respond to market conditions.
 
                                 CONMED CORPORATION
                         CONSOLIDATED STATEMENTS OF INCOME
                       Three Months Ended March 2000 and 2001
                      (In thousands except per share amounts)
                                    (unaudited)
 
                                                         2000           2001
 
     Net sales                                       $102,811       $105,909
 
     Cost of sales                                     48,661         49,674
     Selling and administrative expense                30,762         34,829
     Research and development expense                   3,406          3,696
                                                       82,829         88,199
 
     Income from operations                            19,982         17,710
 
     Interest expense, net                              8,405          8,331
 
     Income before income taxes                        11,577          9,379
 
     Provision for income taxes                         4,168          3,376
 
     Net income                                        $7,409         $6,003
 
     Per share data:
       Net income
         Basic                                           $.48           $.39
         Diluted                                          .48            .39
 
     Weighted average common shares
     and equivalents
         Basic                                         15,286         15,371
         Diluted                                       15,559         15,538
 
 
                               CONMED CORPORATION
                     CONSOLIDATED CONDENSED  BALANCE SHEETS
                                 (in thousands)
 
                                     ASSETS
                                                                 (unaudited)
                                                     December          March
                                                         2000           2001
     Current assets:
       Cash and cash equivalents                       $3,470         $4,104
       Accounts receivable, net                        78,626         80,462
       Inventories                                    104,612        104,472
       Other current assets                             5,323          5,989
         Total current assets                         192,031        195,027
     Property, plant and equipment, net.               62,450         64,130
     Goodwill and other assets, net                   425,090        421,934
         Total assets                                $679,571       $681,091
 
                        LIABILITIES AND SHAREHOLDERS' EQUITY
 
     Current liabilities:
       Current portion of long-term debt             $ 36,068       $ 36,866
       Accrued interest                                 5,130          2,016
       Other current liabilities                       37,078         42,879
         Total current liabilities                     78,276         81,761
     Long-term debt                                   342,680        335,859
     Other long-term liabilities                       28,012         28,997
         Total liabilities                            448,968        446,617
 
     Shareholders' equity:
       Capital accounts                               127,796        128,277
       Retained earnings                              103,834        109,837
       Accumulated other comprehensive loss           (1,027)        (3,640)
 
     Total equity                                     230,603        234,474
 
         Total liabilities and
           shareholders' equity                      $679,571       $681,091
 
                            OTHER FINANCIAL INFORMATION
                             (unaudited, in thousands)
 
                                                        Three months ended
                                                               March
                                                         2000           2001
 
     EBITDA (excluding non-recurring items)           $26,732       $ 24,922
     Depreciation                                       2,306          2,185
     Amortization                                       4,444          5,027
     Capital expenditures                               3,798          3,867
 
 

SOURCE CONMED Corporation
    UTICA, N.Y., April 25 /PRNewswire/ -- CONMED Corporation (Nasdaq:   CNMD)
 today reported financial results for the three months ended March 31, 2001.
     Sales for the first quarter increased to a record $105.9 million from the
 $102.8 million reported in the first quarter last year.  Net income was
 $6.0 million, or $0.39 per diluted share, compared to $7.4 million, or $0.48
 per diluted share, in the first quarter of 2000.  After adding back non-cash
 amortization expenses, net income was $7.8 million, or $.50 per diluted share,
 compared to $9.2 million, or $.59 per diluted share in the same quarter in
 2000.  Foreign currency fluctuations caused sales to be $1.3 million less than
 would have been the case had translation rates remained consistent with first
 quarter 2000 rates.
     Sales in the Company's orthopedic division grew to $70.8 million from
 $68.8 million in the comparable quarter last year.  Arthroscopy sales
 increased to $40.2 million from $39.4 million in the same period last year,
 while Powered Instrument sales grew to $30.6 million from $29.4 million in
 2000's first quarter.
     Commenting on the orthopedic division, Joseph Corasanti, President and
 Chief Operating Officer, stated, "We experienced some positive trends in the
 orthopedic division during the first quarter.  We were especially pleased with
 the sales performance of our single use resection blades, which grew 7%, and
 fluid management products, which stabilized, reversing the negative trends
 experienced last year, and the Hall(R) Surgical branded power instruments
 which grew 11% from last year's first quarter.  An exceptionally strong first
 quarter last year, resulted in modest year over year sales declines in our 3M
 and imaging product lines, both of which met internal expectations."
     Electrosurgery revenues were $15.0 million, an 8% increase from
 $13.9 million in the first quarter last year, reflecting improved generator
 and disposable product sales.  Including the contribution of the Company's
 November 2000 acquisition of the Imagyn disposable product line, Minimally
 Invasive Surgery (MIS) products nearly doubled to $2.5 million.  Excluding the
 contribution of the acquisition, MIS sales grew 13% in the first quarter.
 Sales of patient care products were $17.6 million compared to $18.7 million,
 reflecting an expected decline in surgical suction products.
     Mr. Corasanti commented, "Overall, we are pleased with the solid
 performance of our product lines, many of which exceeded our expectations.
 Our efforts to re-energize sales through increased marketing, R&D and
 exclusive distributor groups are beginning to yield positive results.  In
 addition, our gross margin percentage for the first quarter of 2001 has
 improved to 53.1% from 52.7% a year ago."
     Mr. Corasanti added, "New product launches remain central to our sales
 efforts.  We are pleased by the feedback we have received on the Advantage(TM)
 Powered Instrument system introduced at the American Academy of Orthopedic
 Surgeons conference in February, and are excited about our recently introduced
 Trident(TM) Resection Ablator.  It combines the functionality of three
 arthroscopic tools into one.  Looking ahead, we remain on track to post 6%
 revenue growth for the year, with the orthopedic sales growing approximately
 8%, and a 15% to 20% increase in earnings per share.  Based on current data,
 we anticipate sales in the second quarter to range from $99 million to
 $104 million compared to $98.0 million in the second quarter last year, and
 earnings per share of $0.35 to $0.40 compared to $0.23 last year."
 
     CONMED is a medical technology company specializing in instruments and
 implants for arthroscopic sports medicine, and powered surgical instruments
 for orthopedic, ENT, neuro-surgery, and other surgical specialties.  The
 Company is also a leading developer, manufacturer and supplier of advanced
 medical devices, including RF electrosurgery systems used in all types of
 surgery, ECG electrodes for heart monitoring and minimally invasive surgical
 devices.  Headquartered in Utica, New York, the Company's 2,400 employees
 distribute its products worldwide from eight manufacturing locations.
 
     This press release contains forward-looking statements based on certain
 assumptions and contingencies that involve risks and uncertainties.  The
 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 forward-looking
 statements in this press release involve risks and uncertainties which could
 cause actual results, performance or trends, including the above mentioned
 anticipated revenues and earnings, to differ materially from those expressed
 in the forward-looking statements.  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.
 In addition to general industry and economic conditions, factors that could
 cause actual results to differ materially from those discussed in the forward-
 looking statements in this press release include, but are not limited to: (i)
 the failure of any one or more of the assumptions stated above to prove to be
 correct; (ii) the risks relating to forward-looking statements discussed in
 the Company's Annual Report on Form 10-K for the fiscal year ended December
 31, 2000; (iii) cyclical purchasing patterns from customers, end-users and
 dealers;  (iv) timely release of new products, and acceptance of such new
 products by the market; (v) the introduction of new products by competitors
 and other competitive responses; (vi) the possibility that any new acquisition
 or other transaction may require the Company to reconsider its financial
 assumptions and goals/targets; and/or (vii) the Company's ability to devise
 and execute strategies to respond to market conditions.
 
                                 CONMED CORPORATION
                         CONSOLIDATED STATEMENTS OF INCOME
                       Three Months Ended March 2000 and 2001
                      (In thousands except per share amounts)
                                    (unaudited)
 
                                                         2000           2001
 
     Net sales                                       $102,811       $105,909
 
     Cost of sales                                     48,661         49,674
     Selling and administrative expense                30,762         34,829
     Research and development expense                   3,406          3,696
                                                       82,829         88,199
 
     Income from operations                            19,982         17,710
 
     Interest expense, net                              8,405          8,331
 
     Income before income taxes                        11,577          9,379
 
     Provision for income taxes                         4,168          3,376
 
     Net income                                        $7,409         $6,003
 
     Per share data:
       Net income
         Basic                                           $.48           $.39
         Diluted                                          .48            .39
 
     Weighted average common shares
     and equivalents
         Basic                                         15,286         15,371
         Diluted                                       15,559         15,538
 
 
                               CONMED CORPORATION
                     CONSOLIDATED CONDENSED  BALANCE SHEETS
                                 (in thousands)
 
                                     ASSETS
                                                                 (unaudited)
                                                     December          March
                                                         2000           2001
     Current assets:
       Cash and cash equivalents                       $3,470         $4,104
       Accounts receivable, net                        78,626         80,462
       Inventories                                    104,612        104,472
       Other current assets                             5,323          5,989
         Total current assets                         192,031        195,027
     Property, plant and equipment, net.               62,450         64,130
     Goodwill and other assets, net                   425,090        421,934
         Total assets                                $679,571       $681,091
 
                        LIABILITIES AND SHAREHOLDERS' EQUITY
 
     Current liabilities:
       Current portion of long-term debt             $ 36,068       $ 36,866
       Accrued interest                                 5,130          2,016
       Other current liabilities                       37,078         42,879
         Total current liabilities                     78,276         81,761
     Long-term debt                                   342,680        335,859
     Other long-term liabilities                       28,012         28,997
         Total liabilities                            448,968        446,617
 
     Shareholders' equity:
       Capital accounts                               127,796        128,277
       Retained earnings                              103,834        109,837
       Accumulated other comprehensive loss           (1,027)        (3,640)
 
     Total equity                                     230,603        234,474
 
         Total liabilities and
           shareholders' equity                      $679,571       $681,091
 
                            OTHER FINANCIAL INFORMATION
                             (unaudited, in thousands)
 
                                                        Three months ended
                                                               March
                                                         2000           2001
 
     EBITDA (excluding non-recurring items)           $26,732       $ 24,922
     Depreciation                                       2,306          2,185
     Amortization                                       4,444          5,027
     Capital expenditures                               3,798          3,867
 
 SOURCE  CONMED Corporation

RELATED LINKS

http://www.conmed.com