UTICA, N.Y., Oct. 17 /PRNewswire/ -- CONMED Corporation (Nasdaq: CNMD)
today reported financial results for the three and nine months ended
September 30, 2001.
Sales for the third quarter 2001 increased 13.5% to $105.3 million
compared to $92.8 million in the third quarter of 2000. Internal sales
increases amounted to 6.7% while 6.8% of the Company's total revenue growth
was a function of acquisitions. Net income grew to $5.6 million, before an
acquisition related charge, and was more than double the $2.7 million earned
in the September quarter of 2000. Diluted earnings per share were $.22,
excluding the acquisition related charge, compared to $.12, an 83% increase.
Excluding goodwill and related amortization, earnings per share would have
been $.05 higher for the quarter, or $.27.
The Company completed the acquisition of certain surgical products from
Imagyn Medical Technologies, Inc. on July 6, 2001. As previously announced,
the Company incurred various transitional costs in connection with moving the
manufacturing from Imagyn's facilities to the Company's manufacturing plant.
During the quarter ended September 30, 2001, these costs amounted to $886,000,
which reduced diluted earnings per share by $.02. Thus, diluted earnings per
share including the transitional costs were $.20. The Company expects an
additional $500,000 of such costs in the fourth quarter of 2001.
Sales of the Company's orthopedic products in the third quarter grew 4.4%
to $63.8 million compared to $61.1 million in last year's third quarter.
Arthroscopy sales increased 11.4% to $37.1 million from $33.3 million in the
same period last year, while Powered Instrument sales declined slightly to
$26.7 million from $27.8 million.
Electrosurgery revenues were $16.8 million, an increase of 17.5% over the
$14.3 million in last year's third quarter. Sales of Patient Care products
grew to $16.8 million, a 5.0% increase over revenues of $16.0 million in the
third quarter of 2000. Including the contribution of the Company's November
2000 and July 2001 acquisitions of the Imagyn product lines, sales of
Endoscopy products grew to $7.9 million in the third quarter of 2001 compared
to $1.4 million in the same period last year.
Mr. Joseph J. Corasanti, President and Chief Operating Officer, commented,
"I am very pleased with our financial results for the third quarter of 2001.
Arthroscopy and Electrosurgery had double-digit growth, Patient Care has
stabilized and our Endoscopy group is well on its way to integrating the
acquisitions and is performing to our expectations. I continue to believe
that our business is gaining momentum. Our new products are gaining traction
and our sales forces are performing to our expectations as evidenced by our
fine sales growth in the quarter. I look forward to completing the year 2001
with a strong fourth quarter and to continuing our growth in 2002."
For the nine months ended September 30, 2001, sales increased 7.5% to
$315.4 million compared to $293.5 in the first nine months of 2000. Net
income for year-to-date September 2001, excluding unusual charges in the third
quarter of 2001 and the second quarter of 2000, increased 18.5% to
$17.3 million compared to $14.6 million, and earnings per share, adjusted for
the 3-for-2 stock split in September 2001, increased 14.3% to $.72 from $.63.
Including the special charges for the nine-month periods of 2001 and 2000, net
income increased 22.7% to $16.8 million and earnings per share increased 18.6%
to $.70.
Mr. Corasanti continued, "Our outlook for the remainder of the year
remains consistent with our earlier guidance. Including the effects of the
just completed Imagyn product line acquisition, we expect fourth quarter
revenues of $108-$112 million. This would result in full year 2001 sales of
$423-$427 million, for total year-to-year growth of 8-9%. We expect fourth
quarter earnings per share to be $.28-$.31, excluding the nonrecurring
transition charge referred to above. For 2002, we expect internal sales
growth of approximately 6% and total sales growth of approximately 8% when
considering the effects of the Imagyn acquisition. Earnings per share in 2002
should increase 35-40% over 2001 when considering the effects of the
elimination of goodwill amortization, which will add $.22 per share to our
annual earnings."
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 herein or in previous disclosures. 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, including those relating to the
timing and costs of the transition, 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
(in thousands except per share amounts)
(unaudited)
For three months For nine months
ended ended
September September
2000 2001 2000 2001
Net sales $92,838 $105,318 $293,527 $315,398
Cost of sales 44,136 50,446 140,124 150,085
Selling and administrative 31,495 35,029 93,995 103,780
Research and development 4,109 3,491 11,087 10,663
Unusual items - Note A -- 886 1,509 886
79,740 89,852 246,715 265,414
Income from operations 13,098 15,466 46,812 49,984
Interest expense, net 8,834 7,630 25,477 23,809
Income before income taxes 4,264 7,836 21,335 26,175
Provision for income taxes 1,535 2,821 7,681 9,423
Net income $2,729 $5,015 $13,654 $16,752
Per share data:
Net Income
Basic $.12 $.20 $.59 $.71
Diluted .12 .20 .59 .70
Weighted average common shares
Basic 22,986 24,806 22,961 23,657
Diluted 23,132 25,381 23,246 23,990
Note A - In the second quarter of 2000, the Company incurred a severance
charge of $1,509,000 related to the restructuring of the Company's
arthroscopy sales force. In the third quarter of 2001, the Company
incurred $886,000 of non-recurring transition expenses related to a
July 6, 2001 product line acquisition.
CONMED CORPORATION
CONSOLIDATED CONDENSED BALANCE SHEETS
(in thousands)
ASSETS
(unaudited)
December Sept.
2000 2001
Current assets:
Cash and cash equivalents $3,470 $2,015
Accounts receivable, net 78,626 85,719
Inventories 104,612 107,337
Other current assets 5,323 5,567
Total current assets 192,031 200,638
Property, plant and equipment, net 62,450 91,898
Goodwill and other assets, net 425,090 446,805
Total assets $679,571 $739,341
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Current portion of long-term debt $36,068 $39,581
Accrued interest 5,130 2,541
Other current liabilities 37,078 36,983
Total current liabilities 78,276 79,105
Long-term debt 342,680 348,826
Other long-term liabilities 28,012 35,603
Total liabilities 448,968 463,534
Shareholders' equity:
Capital accounts 127,796 159,248
Retained earnings 103,834 120,586
Accumulated other comprehensive loss (1,027) (4,027)
Total shareholders' equity 230,603 275,807
Total liabilities and shareholders' equity $679,571 $739,341
OTHER FINANCIAL INFORMATION
(unaudited, in thousands)
Three months ended Nine months ended
September September
2000 2001 2000 2001
EBITDA
(excluding non-recurring items) $20,148 $23,922 $69,078 $72,775
Depreciation 2,394 2,303 7,006 6,648
Amortization 4,656 5,265 13,751 15,255
Capital expenditures 4,265 4,049 11,867 12,704
SOURCE CONMED Corporation
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Related links:
http://www.conmed.com
Company News On-Call:
http://www.prnewswire.com/comp/201850.html
CONTACT:
Robert Shallish, Chief Financial Officer of
CONMED Corporation, +1-315-624-3206; Investors - Theresa Vogt or
Lanie Fladell, Media - Dan Budwick, all of Morgen-Walke
Associates, +1-212-850-5600
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