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
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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, ext. 2219; Investors - Theresa
Vogt or Sarah Torres, or Media - Dan Budwick, all of Morgen-Walke
Associates, 212-850-5600 for CONMED Corporation
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