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CONMED Corp. Reports Operating Results (10-Q)

July 30, 2012 | About:
10qk

10qk

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CONMED Corp. (CNMD) filed Quarterly Report for the period ended 2012-06-30.

Conmed Corporation has a market cap of $763.8 million; its shares were traded at around $27.42 with a P/E ratio of 16.4 and P/S ratio of 1.1. The dividend yield of Conmed Corporation stocks is 2.2%.

Highlight of Business Operations:

Sales for the quarterly period ended June 30, 2012 were $189.7 million , an increase of $6.5 million (3.5%) compared to sales of $183.2 million in the same period a year ago with increases in our Arthroscopy and Endoscopic Technologies product lines. The distribution agreement with Musculoskeletal Tissue Foundation (“MTF”) accounted for a 3.9% quarterly sales increase offset by decreases in our Powered Instruments, Endosurgery, Electrosurgery and Patient Care product lines. In local currency, excluding the effects of the hedging program, sales increased 3.8%. Sales of capital equipment decreased $4.3 million (-10.7%) to $35.8 million in the quarterly period ended June 30, 2012 from $40.1 million in the same period a year ago; sales of single-use products increased $10.8 million (7.5%) to $153.9 million in the quarterly period ended June 30, 2012 from $143.1 million in the same period a year ago. On a local currency basis, excluding the effects of our hedging program, sales of capital equipment decreased 10.3% while single-use products increased 7.8%. We believe the overall decline in capital sales is driven by capital purchasing constraints in hospitals due to the depressed economic conditions.

Sales for the six months ended June 30, 2012 were $384.0 million, an increase of $17.3 million (4.7%) compared to sales of $366.7 million in the same period a year ago with increases in our Arthroscopy and Endoscopic Technologies product lines. The distribution agreement with Musculoskeletal Tissue Foundation (“MTF”) accounted for 4.0% of the 4.7% increase. In local currency, excluding the effects of the hedging program, sales increased 4.6%. Sales of capital equipment decreased $6.2 million (7.6%) to $75.8 million in the six months ended June 30, 2012 from $82.0 million in the same period a year ago; sales of single-use products increased $23.5 million (8.3%) to $308.2 million in the six months ended June 30, 2012 from $284.7 million in the same period a year ago. On a local currency basis, excluding the effects of our hedging program, sales of capital equipment decreased 7.5% while single-use products increased 8.1%. We believe the overall decline in capital sales is driven by capital purchasing constraints in hospitals due to the depressed economic conditions.

capital equipment decreased $0.1 million (-0.7%) to $13.5 million in the second quarter of 2012 from $13.6 million in the same period a year ago; sales of single-use products increased $10.5 million (18.4%) to $67.5 million in the second quarter of 2012 from $57.0 million in the same period a year ago. On a local currency basis, excluding the effects of the hedging program, sales of capital equipment remained flat while single-use products increased 18.6%. We believe the overall decline in capital sales is driven by capital purchasing constraints in hospitals due to the depressed economic conditions. Arthroscopy sales increased $21.2 million (14.5%) in the six months ended June 30, 2012 to $167.2 million from $146.0 million in the same period a year ago mainly due to the distribution agreement with MTF and higher procedure specific product sales offset by lower sales of our video imaging products for arthroscopy and general surgery. The distribution agreement with MTF accounted for 10.0% of the 14.5% increase. In local currency, excluding the effects of the hedging program, sales increased 14.3%. Sales of capital equipment decreased $0.4 million (-1.3%) to $30.5 million in the six months ended June 30, 2012 from $30.9 million in the same period a year ago; sales of single-use products increased $21.6 million (18.8%) to $136.7 million in the six months ended June 30, 2012 from $115.1 million in the same period a year ago. On a local currency basis, excluding the effects of the hedging program, sales of capital equipment decreased 1.0% while single-use products increased 18.4%. We believe the overall decline in capital sales is driven by capital purchasing constraints in hospitals due to the depressed economic conditions.

Powered surgical instrument sales decreased $1.1 million (-2.9%) in the quarterly period ended June 30, 2012 to $37.2 million from $38.3 million in the same period a year ago mainly due to lower sales of our large bone hand piece products. In local currency, excluding the effects of the hedging program, sales decreased 2.6%. Sales of capital equipment decreased $2.2 million (-11.9%) to $16.3 million in the second quarter of 2012 from $18.5 million in the same period a year ago; sales of single-use products increased $1.1 million (5.6%) in the second quarter of 2012 to $20.9 million from $19.8 million in the same period a year ago. On a local currency basis, excluding the effects of the hedging program, sales of capital equipment decreased 11.7% and single-use products increased 5.9%. We believe the overall decline in capital sales is due to a very strong performance in the second quarter of 2011 making for a difficult comparison to sales in 2012. Powered surgical instrument sales decreased $0.6 million (-0.8%) in the six months ended June 30, 2012 to $75.8 million from $76.4 million in the same period a year ago mainly due to lower sales of our large bone hand piece products offset by increases in small bone burs and blades. In local currency, excluding the effects of the hedging program, sales decreased 0.9%. Sales of capital equipment decreased $2.8 million (-7.7%) to $33.4 million in the six months ended June 30, 2012 from $36.2 million in the same period a year ago; sales of single-use products increased $2.2 million (5.5%) in the six months ended 2012 to $42.4 million from $40.2 million in the same period a year ago. On a local currency basis, excluding the effects of the hedging program, sales of capital equipment decreased 7.9% and single-use products increased 5.4%. We believe the overall decline in capital sales is due to a very strong performance in the first half of 2011 making for a difficult comparison to sales in 2012.

Electrosurgery sales decreased $1.7 million (-6.5%) in the quarterly period ended June 30, 2012 to $24.4 million from $26.1 million in the same period a year ago mainly due to lower generator and pencil sales offset by sales of our new vessel sealing products and increased sales of our smoke management products. In local currency, excluding the effects of the hedging program, sales decreased 6.1%. Sales of capital equipment decreased $2.0 million (-25.0%) to $6.0 million in the second quarter of 2012 from $8.0 million in the same period a year ago; sales of single-use products increased $0.3 million (1.7%) to $18.4 million in the second quarter of 2012 from $18.1 million in the same period a year ago. On a local currency basis, excluding the effects of our hedging program, sales of capital equipment decreased 25.0% while single-use products increased 2.2%. We believe the overall decline in capital sales is due to a very strong performance in the second quarter of 2011 making for a difficult comparison to sales in 2012 as well as capital purchasing constraints in hospitals due to the depressed economic conditions. Electrosurgery sales decreased $2.8 million (-5.6%) in the six months ended June 30, 2012 to $46.9 million from $49.7 million in the same period a year ago mainly due to lower generator and pencil sales offset by sales of our new vessel sealing products and increased sales of our smoke management products. In local currency, excluding the effects of the hedging program, sales decreased 5.6%. Sales of capital equipment decreased $3.0 million (-20.1%) to $11.9 million in the six months ended June 30, 2012 from $14.9 million in the same period a year ago; sales of single-use products increased $0.2 million (0.6%) to $35.0 million in the six months ended June 30, 2012 from $34.8 million in the same period a year ago. On a local currency basis, excluding the effects of our hedging program, sales of capital equipment decreased 20.1% while single-use products increased 0.6%. We believe the overall decline in capital sales is due to a very strong performance in the first half of 2011 making for a difficult comparison to sales in 2012 as well as capital purchasing constraints in hospitals due to the depressed economic conditions.

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