UTICA, N.Y., Feb. 8 /PRNewswire/ -- CONMED Corporation (Nasdaq: CNMD)
today reported financial results for the fourth quarter and year ended
December 31, 2000.
Sales for the fourth quarter were $101.4 million compared to $99.6 million
in the same quarter last year. Net income was $5.7 million, or $0.37 per
diluted share. Net income in the fourth quarter of 1999 was $7.7 million, or
$0.50 per diluted share, excluding nonrecurring items. After adding back
non-cash amortization expenses, net income was $7.5 million, or $0.48 per
diluted share, compared to $9.5 million, or $0.61 per diluted share in the
same quarter in 1999.
Sales in the Company's orthopedic businesses grew to $65.5 million,
3.5% above the $63.3 million reported in the comparable quarter last year.
Excluding the impact of foreign currency, orthopedic sales grew 5.8%.
Arthroscopy sales, which represented approximately 55% of orthopedic revenues,
were $35.8 million compared to the $37.3 million reported in an exceptionally
strong fourth quarter last year. Sales in the powered surgical instruments
business, which represented approximately 45% of orthopedic revenues, grew
14.5% to $29.7 million from $26.0 million in the same quarter in 1999.
Non-orthopedic sales were $35.9 million compared to $36.3 million in the
fourth quarter last year. Electrosurgery and minimal access surgery product
lines grew a combined 11.0% in the quarter, while patient care products
declined 12.4%. As previously disclosed, the lower sales volumes in patient
care sales are primarily a result of increased competition and pricing
pressure in the surgical suction product line.
For the year ended December 31, 2000, sales increased to $392.2 million
from $372.6 million in 1999. Net income, excluding a nonrecurring severance
charge, was $20.3 million, or $1.31 per diluted share. Net income in 1999,
excluding non-recurring items was $27.4 million, or $1.77 per diluted share.
After adding back non-cash amortization expense, net income was $27.6 million,
or $1.78 per diluted share, compared to $34.3 million, or $2.22 per diluted
share in 1999.
Sales outside the United States represented 27% of total fourth quarter
revenues, compared to 25% in the fourth quarter of 1999. For the year,
international sales represented 27.2% of sales compared to 24.5% of 1999
sales. Negative foreign currency fluctuations reduced the Company's sales and
pre-tax profits by $1.5 million for the fourth quarter and $3.2 million for
the year.
During the second quarter of 2000, the Company incurred a nonrecurring
severance charge of $1.5 million in connection with a change from direct
distribution to non-stocking exclusive sales agent groups for certain
geographic regions of the United States. Including the charge, the Company
reported net income of $19.3 million, or $1.24 per diluted share, for the
year.
Joseph J. Corasanti, President and Chief Operating Officer, commented, "We
are pleased with our results for the fourth quarter. We believe that the
Company's performance will continue to improve during 2001. I am encouraged
by the performance of our newer products, including the PowerPro(TM) addition
to our powered surgical instruments line and the three chip autoclavable
camera which exceeded our expectations in the fourth quarter. Additionally, we
will be introducing a number of new products at the American Academy of
Orthopedic Surgeons convention later this month."
Mr. Corasanti added, "Last year was one of transition for CONMED. We are
on track to deliver improved performance in 2001 through new product
introductions, the continuation of strong international sales and the positive
impact of the improved domestic distribution of the Company's orthopedic
products. Our projections for the first quarter remain strong with sales in
the range of $102 to $106 million and earnings per share of $0.37 and $0.41.
For the full year, we anticipate total sales to increase approximately 6%,
with orthopedic sales growing 8-9%. Increased operating leverage coupled with
our debt repayment program is expected to result in earnings growth of 15% to
20%."
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, 1999; (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; and/or (vi) the Company's ability
to devise and execute strategies to respond to market conditions.
CONMED CORPORATION
CONSOLIDATED STATEMENTS OF INCOME
(thousands except per share amounts)
Three months ended Twelve months ended
December December
1999 2000 1999 2000
Net sales $ 99,553 $101,409 $372,617 $392,230
Cost and expenses:
Cost of sales -
Note A 47,077 48,099 178,480 188,223
Selling and
administrative
- Note B 27,458 31,875 107,233 124,673
Research and
development 3,275 3,783 12,108 14,870
Total operating
expenses 77,810 83,757 297,821 327,766
Income from operations 21,743 17,652 74,796 64,464
Interest expense, net (8,408) (8,809) (32,360) (34,286)
Income before income
taxes 13,335 8,843 42,436 30,178
Provision for income
taxes (4,801) (3,183) (15,277) (10,864)
Net income $8,534 $5,660 $27,159 $ 19,314
Per share data:
Net Income
Basic $.56 $.37 $1.78 $1.26
Diluted .55 .37 1.76 1.24
Weighted average common shares
Basic 15,278 15,326 15,241 15,311
Diluted 15,521 15,446 15,430 15,514
Note A - Cost of sales for the year ended December 1999 includes a
non-recurring charge of approximately $1.6 million or $.07 per
diluted share related to the purchase accounting valuation of
inventory.
Note B - Selling and administrative expense for the year ended December
2000 includes a one-time severance charge of approximately
$1.5 million or $.06 per diluted share related to the
restructuring of the Company's arthroscopy sales force. Selling
and administrative expense for the quarter and year ended
December 1999 include the $1.3 million or $.05 per diluted share
effect of the reversal of a portion of a previously recorded
litigation accrual which was settled on favorable terms.
CONMED CORPORATION
CONSOLIDATED CONDENSED BALANCE SHEETS
(in thousands)
ASSETS
December December
1999 2000
Current assets:
Cash and cash equivalents $3,747 $3,470
Accounts receivable, net 76,413 78,626
Inventories 89,681 104,612
Other current assets 6,876 5,323
Total current assets 176,717 192,031
Property, plant and equipment, net 57,834 62,450
Goodwill and other assets, net 427,610 425,090
Total assets $662,161 $679,571
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Current portion of long-term debt $ 32,875 $ 36,068
Accrued interest 4,588 5,130
Other current liabilities 29,728 37,297
Total current liabilities 67,191 78,495
Long-term debt 361,794 342,680
Other long-term liabilities 21,915 28,012
Total liabilities 450,900 449,187
Shareholders' equity:
Capital accounts 127,128 127,577
Retained earnings 84,520 103,834
Accumulated other comprehensive income (387) (1,027)
Total equity 211,261 230,384
Total liabilities and shareholders' equity $662,161 $679,571
OTHER FINANCIAL INFORMATION
(unaudited, in thousands)
Three months ended Twelve months ended
December December
1999 2000 1999 2000
EBITDA (excluding
non-recurring items) $ 27,155 $ 24,966 $100,110 $ 94,044
Depreciation 2,560 2,428 9,207 9,434
Amortization 4,108 4,886 15,742 18,637
Capital expenditures 3,458 2,183 9,352 14,050
SOURCE CONMED Corporation
 back to top
Related links:
http://www.conmed.com
Company News On-Call:
http://www.prnewswire.com/comp/201850.html or fax,
800-758-5804, ext. 201850
CONTACT:
Robert Shallish, Chief Financial Officer of
CONMED Corporation, 315-797-8375; Investors - Theresa Vogt or
Sarah Torres; or Media - Stacey Nield, or Dan Budwick, all of
Morgen-Walke, 212-850-5600, for CONMED Corporation
|
