UTICA — ConMed Corporation (NASDAQ: CNMD) recently reported net earnings of $7.3 million, or 26 cents a share, in the third quarter, down from $8.9 million, or 32 cents, in the year-ago period. The earnings figure includes business acquisition and restructuring costs, along with a gain on the sale of the company’s facility in Centennial, […]
UTICA — ConMed Corporation (NASDAQ: CNMD) recently reported net earnings of $7.3 million, or 26 cents a share, in the third quarter, down from $8.9 million, or 32 cents, in the year-ago period.
The earnings figure includes business acquisition and restructuring costs, along with a gain on the sale of the company’s facility in Centennial, Colorado, while the earnings figure during the same period in 2015 included restructuring costs, according to a ConMed news release.
ConMed’s domestic sales, which represented 53.7 percent of total revenue, increased 13 percent as “strong” growth in its general-surgery business was partially offset by declines in orthopedics and visualization, the company said.
The SurgiQuest acquisition contributed to 32.1 percent year-over-year growth in the U.S. general-surgery business.
ConMed closed on its acquisition of SurgiQuest, Inc., a Connecticut–based surgical-device maker, in early January 2016.
International sales, which represented 46.3 percent of total revenue, increased 5.1 percent in the third quarter compared to the third quarter of 2015 on a reported basis.
Foreign currency-exchange rates, including the effects of the FX hedging program, had a negative impact of $3.4 million on third-quarter sales.
In constant currency, international sales increased 9.2 percent versus the prior-year period.
“We are encouraged by the continued progress in our international markets, strong contribution from AirSeal, and solid organic growth within general surgery. While the rebuilding of our domestic orthopedics franchise is taking longer than expected, we feel confident that we are making the appropriate changes to return this business to growth. Overall, we are pleased with a return to positive organic growth on a constant currency basis,” Curt Hartman, president and CEO of ConMed, said in its release. “As we close out the year, we look to build upon the recent momentum across several of our businesses while continuing to focus on improving operating efficiencies and reaccelerating organic growth across all of our product categories.”
2016 outlook
ConMed didn’t make any changes to its previously issued financial guidance.
The firm continues to expect 2016 constant-currency, organic-sales growth in the range of -1 percent to 1 percent and sales related to the SurgiQuest acquisition between $62 million and $67 million.
Based on foreign currency-exchange rates as of Oct. 21, ConMed said it continues to anticipate the negative impact of foreign exchange for the year in the range of $17 million to $19 million.
ConMed continues to expect 2016 reported sales of $757 million to $767 million, which represents growth of 5.3 percent to 6.7 percent over reported 2015 revenue of $719 million.
The company expects adjusted net earnings per share between $1.83 and $1.93.
Contact Reinhardt at ereinhardt@cnybj.com
