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ConMed Q2 net income declines after recent acquisition

By Eric Reinhardt

Date:

Utica–based ConMed Corp. (Nasdaq: CNMD) on July 31 reported net income of nearly $5.7 million during the second quarter, which was down compared to $8.7 million during the second quarter of 2018. The surgical-device maker said that the results were impacted by consulting fees, legal fees, severance and integration related costs associated with the acquisition of Buffalo Filter, LLC back in February. (Photo credit: ConMed Corp. website)

UTICA — ConMed Corp. (NASDAQ: CNMD) on July 31 reported net income of nearly $5.7 million, or 19 cents a share, down from $8.7 million, or 30 cents, in the year-ago period.

The Utica–based surgical-device maker noted that it incurred consulting fees, legal fees, severance and integration-related costs associated with the acquisition of Buffalo Filter, LLC, which impacted the second-quarter results.

Adjusting for those factors, ConMed reported adjusted net income of $16.4 million, or 56 cents per share, in the second quarter, up from $13.3 million, or 46 cents a share, in the second quarter of 2018.

ConMed on Feb. 11 announced it had completed its acquisition of the Buffalo company, which it described as “the market leader in surgical smoke evacuation technologies.”

The company generated revenue of $238.3 million in the latest quarter, which increased 12 percent year over year as reported and 12.8 percent in constant currency. Domestic revenue increased 17.6 percent year over year, while international revenue rose 6 percent as reported and 7.8 percent in constant currency.

ConMed is a medical technology company that provides surgical devices and equipment for minimally invasive procedures. The firm says its products are used by surgeons and physicians in specialties that include orthopedics, general surgery, gynecology, neurosurgery, thoracic surgery, and gastroenterology.

Increasing guidance

ConMed is increasing its full-year financial guidance. The firm now expects full-year reported sales in the range of between $951 million and $958 million. It includes an increase to its outlook for organic constant-currency sales growth to a range of between 6 percent and 6.5 percent from the previous range of between 5.25 percent and 6.25 percent.

ConMed is also increasing its guidance for adjusted net earnings per share to the range of between $2.52 and $2.57 from the previous range of between $2.47 and $2.52. This represents growth over 2018 of about 16 percent to 18 percent.

The adjusted net earnings-per-share estimates for 2019 exclude amortization of intangible assets, amortization of deferred financing fees and debt discount, which are estimated in the range of $33 million to $35 million, net of tax.

Also excluded are the costs of special items, including acquisition costs, restructuring costs and debt refinancing costs, which are estimated in the range of $16 million to $18 million, net of tax.

Contact Reinhardt at ereinhardt@cnybj.com

 

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