ConMed profit rises in Q4, slips during 2014

UTICA, N.Y. — ConMed Corp. (NASDAQ: CNMD) on Tuesday reported net income of $11.3 million, or 41 cents a share, in the fourth quarter. That’s up 11 percent from $10.2 million, or 36 cents per share, in the year-ago period.

However, the Utica–based surgical-device maker’s revenue fell more than 4 percent to $195 million in the fourth quarter from more than $203 million a year prior.

For the entire year, ConMed earned nearly $32.2 million, or $1.16 per share, down from $35.9 million, or $1.28 a share, in 2013.

ConMed’s sales slipped 3 percent in 2014 to $740 million from $762 million, according to the firm’s earnings release issued after the close of the markets on Tuesday.

The company also reported special charges related to the “ongoing consolidation of certain administrative functions and manufacturing activities,” according to its earnings report.

ConMed also incurred costs due to shareholder activism; changes in senior management; litigation and settlement costs associated with patent and legal disputes; the write-off of New York state-tax credits eliminated due to a legislative change; and other costs, the company said.

Expenses associated with these activities, including severance and relocation costs, amounted to $3.4 million, net of tax, in the fourth quarter of 2014 and $21.2 million, net of tax, for all of 2014.

ConMed’s adjusted earnings per share were 53 cents in the fourth quarter, unchanged from the year-earlier period.

The company’s fourth-quarter results allowed it to complete the year “in-line” with the guidance it provided last July and reconfirmed in October, Curt Hartman, president and CEO, said in the ConMed earnings report.

Company cuts 2015 guidance

However, ConMed also lowered its guidance for its 2015 earnings and revenue, based on “significant” volatility in the currency markets. ConMed now expects sales in a range of $727 million to $742 million this year, down from its previous forecast of $740 million to $755 million. And it forecasts earnings per share of $1.82-$1.92 a share in 2015, down from its previous guidance of $1.92-$2.02 a share.

ConMed’s stock fell 1 percent to close at $47.14 on Wednesday, the day after its earnings release. The share price is still up nearly 5 percent year to date. The stock gained almost 6 percent in 2014.

“Our focus is on transforming our commercial organization to facilitate future sales and earnings growth. Our management team is fully engaged in this process…” Hartman said in the earnings report.

Hartman’s appointment as president and CEO on Nov. 10 was part of a year of leadership change at ConMed.

Before joining ConMed, Hartman had a 22-year career at Kalamazoo, Mich.–based Stryker Corporation (NYSE: SYK), a medical-technologies firm, where he served in a variety of executive leadership roles, ConMed said.

Earlier in the year, the firm on July 23 announced that Joseph (Joe) Corasanti had stepped down as CEO, president, and board member. Founder Eugene (Gene) Corasanti also retired.