CONMED Corp. (CNMD) filed Quarterly Report for the period ended 2009-09-30.
CONMED Corporation is a medical technology company specializing in instruments and implants for arthroscopic sports medicine and powered surgical instruments such as drills and saws for orthopaedic ENT and neurosurgery. The company is also a leading developer manufacturer and supplier of advanced medical devices including electrosurgical systems electrodes for heart monitoring. The company's products are used in a variety of clinical settings such as operating rooms surgery centers physicians' offices and critical care areas of hospitals. Conmed Corp. has a market cap of $616.31 million; its shares were traded at around $21.19 with a P/E ratio of 21.62 and P/S ratio of 0.83. Conmed Corp. had an annual average earning growth of 1.5% over the past 10 years.
Highlight of Business Operations:
Our net working capital position was $235.3 million at September 30, 2009. Net cash provided by operating activities was $25.8 million in the nine months ended September 30, 2009 and $59.7 million in the same period a year ago. Net cash provided by operating activities decreased by $33.9 million in 2009 as compared to 2008 primarily as a result of a $24.5 million decrease in net income in the nine months ending September 30, 2009 as compared to the same period a year ago
Net cash used in financing activities in the nine months ended September 30, 2009 consisted primarily of $7.0 million in borrowings on our revolving credit facility under our senior credit agreement, a $7.8 million repurchase of our 2.50% convertible senior subordinated notes, $1.0 million in payments on our term loan under our senior credit agreement, $1.0 million in payments on our mortgage loan, and a $2.3 million net change in cash overdrafts. See Note 15 to the Consolidated Condensed Financial Statements for further discussion of the repurchase of the Notes.
Our $235.0 million senior credit agreement (the "senior credit agreement") consists of a $100.0 million revolving credit facility and a $135.0 million term loan. There were $11.0 million in borrowings outstanding on the revolving credit facility as of September 30, 2009. Our available borrowings on the revolving credit facility at September 30, 2009 were $82.0 million with approximately $7.0 million of the facility set aside for outstanding letters of credit. There were $56.6 million in borrowings outstanding on the term loan at September 30, 2009.
We have outstanding $115.1 million in 2.50% convertible senior subordinated notes due 2024 (“the Notes”). During the nine months ended September 30, 2009, we repurchased and retired $9.9 million of the Notes for $7.8 million and recorded a gain on the early extinguishment of debt of $1.1 million net of the write-offs of $0.1 million in unamortized deferred financing costs and $1.0 million in unamortized debt discount. The Notes represent subordinated unsecured obligations and are convertible under certain circumstances, as defined in the bond indenture, into a combination of cash and CONMED common stock. Upon conversion, the holder of each Note will receive the conversion value of the Note payable in cash up to the principal amount of the Note and CONMED common stock for the Note s conversion value in excess of such principal amount. Amounts in excess of the principal amount are at an initial conversion rate, subject to adjustment, of 26.1849 shares per $1,000 principal amount of the Note (which represents an initial conversion price of $38.19 per share). As of September 30, 2009, there was no value assigned to the conversion feature because the Company s share price was below the conversion price. The Notes mature on November 15, 2024 and are not redeemable by us prior to November 15, 2011. Holders of the Notes will be able to require that we repurchase some or all of the Notes on November 15, 2011, 2014 and 2019 provided the terms of the indenture are satisfied.
As of September 30, 2009, we have incurred $15.2 million (including $3.3 million and $11.2 million, in the quarterly period and nine months ended September 30, 2009, respectively) in costs associated with the restructuring.
Approximately $11.2 million (including $2.2 million and $8.8 million, in the quarterly period and nine months ended September 30, 2009, respectively) of the total $15.2 million in restructuring costs have been charged to cost of goods sold. The $11.2 million charged to cost of goods sold includes $5.3 million in under utilization of production facilities (including $0.7 million and $4.2 million, in the quarterly period and nine months ended September 30, 2009, respectively), $1.4 million in accelerated depreciation (including $0.3 milli
CNMD is in the portfolios of Robert Olstein of Olstein Financial Alert Fund, Richard Pzena of Pzena Investment Management LLC.
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