CONMED Corporation (NYSE: CNMD) today announced financial results for the second quarter ended June 30, 2023.
Second Quarter 2023 Highlights
- Sales of $317.7 million increased 14.6% year over year as reported and 16.6% in constant currency. Acquisitions contributed approximately 400 basis points of growth.
- Domestic revenue increased 17.1% year over year.
- International revenue increased 11.7% year over year as reported and 16.0% in constant currency.
- Diluted net earnings per share (GAAP) were $0.43 compared to diluted net loss per share (GAAP) of $5.65 in the second quarter of 2022.
- Adjusted diluted net earnings per share(1) were $0.83, an increase of 9.2% compared to the second quarter of 2022.
“Our team drove excellent growth across both Orthopedics and General Surgery during the second quarter, building on the momentum we generated during the first three months of the year,” commented Curt R. Hartman, CONMED’s Chair of the Board, President, and Chief Executive Officer. “We remain confident in our ability to grow above market and continue to deliver clinical innovation to our customers.”
2023 Outlook
Based on the second quarter results, the Company is raising its revenue guidance for the full year 2023 and now expects revenue between $1.230 billion and $1.260 billion, compared to its prior guidance of between $1.205 billion and $1.250 billion.
The Company now expects full-year 2023 adjusted diluted net earnings per share(2) in the range of $3.40 to $3.55, compared to its prior range of $3.30 to $3.50.
The expected impact of foreign currency exchange rates is unchanged from the Company’s prior guidance.
Supplemental Financial Disclosures
(1) A reconciliation of reported diluted net earnings (loss) 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 second quarter 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 | Six Months Ended | |||||||||||||||
June 30, | June 30, | |||||||||||||||
2023 | 2022 | 2023 | 2022 | |||||||||||||
Net sales | $ | 317,652 | $ | 277,190 | $ | 613,121 | $ | 519,516 | ||||||||
Cost of sales | 146,962 | 125,413 | 287,110 | 231,748 | ||||||||||||
Gross profit | 170,690 | 151,777 | 326,011 | 287,768 | ||||||||||||
% of sales | 53.7 | % | 54.8 | % | 53.2 | % | 55.4 | % | ||||||||
Selling & administrative expense | 129,700 | 115,826 | 259,784 | 218,701 | ||||||||||||
Research & development expense | 13,572 | 11,493 | 26,110 | 22,165 | ||||||||||||
Income from operations | 27,418 | 24,458 | 40,117 | 46,902 | ||||||||||||
% of sales | 8.6 | % | 8.8 | % | 6.5 | % | 9.0 | % | ||||||||
Interest expense | 9,997 | 5,928 | 20,252 | 10,926 | ||||||||||||
Other expense | - | 112,011 | - | 112,011 | ||||||||||||
Income (loss) before income taxes | 17,421 | (93,481 | ) | 19,865 | (76,035 | ) | ||||||||||
Provision for income taxes | 3,689 | 74,810 | 4,314 | 77,281 | ||||||||||||
Net income (loss) | $ | 13,732 | $ | (168,291 | ) | $ | 15,551 | $ | (153,316 | ) | ||||||
Basic EPS | $ | 0.45 | $ | (5.65 | ) | $ | 0.51 | $ | (5.18 | ) | ||||||
Diluted EPS | 0.43 | (5.65 | ) | 0.49 | (5.18 | ) | ||||||||||
Basic shares | 30,662 | 29,775 | 30,587 | 29,601 | ||||||||||||
Diluted shares | 31,795 | 29,775 | 31,499 | 29,601 | ||||||||||||
Sales Summary | |||||||||||||||||||||
(in millions, unaudited) | |||||||||||||||||||||
Three Months Ended June 30, | |||||||||||||||||||||
% 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 | $ | 140.8 | $ | 120.2 | 17.1 | % | 2.7 | % | 19.8 | % | 29.4 | % | 11.0 | % | 3.8 | % | 14.8 | % | |||
General Surgery | 176.9 | 157.0 | 12.6 | % | 1.5 | % | 14.1 | % | 12.5 | % | 12.9 | % | 5.0 | % | 17.9 | % | |||||
$ | 317.7 | $ | 277.2 | 14.6 | % | 2.0 | % | 16.6 | % | 17.1 | % | 11.7 | % | 4.3 | % | 16.0 | % | ||||
Single-use Products | $ | 264.8 | $ | 230.3 | 14.9 | % | 2.0 | % | 16.9 | % | 15.7 | % | 13.9 | % | 4.5 | % | 18.4 | % | |||
Capital Products | 52.9 | 46.9 | 12.9 | % | 2.2 | % | 15.1 | % | 25.8 | % | 3.4 | % | 3.6 | % | 7.0 | % | |||||
$ | 317.7 | $ | 277.2 | 14.6 | % | 2.0 | % | 16.6 | % | 17.1 | % | 11.7 | % | 4.3 | % | 16.0 | % | ||||
Domestic | $ | 174.7 | $ | 149.2 | 17.1 | % | 0.0 | % | 17.1 | % | |||||||||||
International | 143.0 | 128.0 | 11.7 | % | 4.3 | % | 16.0 | % | |||||||||||||
$ | 317.7 | $ | 277.2 | 14.6 | % | 2.0 | % | 16.6 | % | ||||||||||||
Six Months Ended June 30, | |||||||||||||||||||||
% 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 | $ | 272.0 | $ | 227.7 | 19.4 | % | 3.3 | % | 22.7 | % | 29.2 | % | 14.3 | % | 4.9 | % | 19.2 | % | |||
General Surgery | 341.1 | ||||||||||||||||||||
