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CONMED Corp. Reports Operating Results (10-Q)

October 29, 2012 | About:
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10qk

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CONMED Corp. (CNMD) filed Quarterly Report for the period ended 2012-09-30.

Conmed Corporation has a market cap of $776.8 million; its shares were traded at around $27.33 with a P/E ratio of 15.6 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 September 30, 2012 were $181.9 million , an increase of $9.1 million (5.3%) compared to sales of $172.8 million in the same period a year ago with increases in our Arthroscopy, Powered Instruments, Endosurgery and Endoscopic Technologies product lines. The distribution agreement with Musculoskeletal Tissue Foundation (“MTF”) accounted for a 3.7% quarterly sales increase. In local currency, excluding the effects of the hedging program, sales increased 6.0%. Sales of capital equipment decreased $0.4 million (-1.1%) to $36.9 million in the quarterly period ended September 30, 2012 from $37.3 million in the same period a year ago; sales of single-use products increased $9.5 million (7.0%) to $145.0 million in the quarterly period ended September 30, 2012 from $135.5 million in the same period a year ago. On a local currency basis, excluding the effects of our hedging program, sales of capital equipment increased 0.3% and single-use products increased 7.6%.

Sales for the nine months ended September 30, 2012 were $565.9 million, an increase of $26.4 million (4.9%) compared to sales of $539.5 million in the same period a year ago with increases in our Arthroscopy, Powered Instruments and Endoscopic Technologies product lines. The distribution agreement with Musculoskeletal Tissue Foundation (“MTF”) accounted for 3.9% of the 4.9% increase. In local currency, excluding the effects of the hedging program, sales increased 5.1%. Sales of capital equipment decreased $6.5 million (5.5%) to $112.7 million in the nine months ended September 30, 2012 from $119.2 million in the same period a year ago; sales of single-use products increased $32.9 million (7.8%) to $453.2 million in the nine months ended September 30, 2012 from $420.3 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 5.0% while single-use products increased 7.9%. 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 $7.2 million (10.4%) in the quarter ended September 30, 2012 to $76.6 million from $69.4 million in the same period a year ago mainly due to the distribution agreement with MTF and the acquisition of Viking Systems, Inc.. The distribution agreement with MTF accounted for 9.0 % of the 10.4% increase. In local currency, excluding the effects of the hedging program, sales increased 11.5%. Sales of capital equipment increased $0.6 million (4.0%) to $15.6 million in the third quarter of 2012 from $15.0 million in the same period a year ago; sales of single-use products increased $6.6 million (12.1%) to $61.0 million in the third quarter of 2012 from $54.4 million in the same period a year ago. On a local currency basis, excluding the effects of the hedging program, sales of capital equipment increased 6.0% while single-use products increased 13.0%. Arthroscopy sales increased $28.4 million (13.2%) in the nine months ended September 30, 2012 to $243.9 million from $215.5 million in the same period a year ago mainly due to the distribution agreement with MTF and higher procedure specific product sales. The distribution agreement with MTF accounted for 9.7% of the 13.2% increase. In local currency, excluding the effects of the hedging program, sales

Powered surgical instrument sales increased $1.3 million (3.7%) in the quarterly period ended September 30, 2012 to $36.1 million from $34.8 million in the same period a year ago mainly due to higher sales of our large bone burs and blades and small bone hand piece products. In local currency, excluding the effects of the hedging program, sales increased 4.9%. Sales of capital equipment increased $0.3 million (1.9%) to $16.4 million in the third quarter of 2012 from $16.1 million in the same period a year ago; sales of single-use products increased $1.0 million (5.3%) in the third quarter of 2012 to $19.7 million from $18.7 million in the same period a year ago. On a local currency basis, excluding the effects of the hedging program, sales of capital equipment increased 3.1% and single-use products increased 6.4%. Powered surgical instrument sales increased $0.7 million (0.6%) in the nine months ended September 30, 2012 to $111.8 million from $111.1 million in the same period a year ago mainly due to higher sales of our large bone burs and blades and small bone hand piece products. In local currency, excluding the effects of the hedging program, sales increased 0.9%. Sales of capital equipment decreased $2.6 million (-5.0%) to $49.7 million in the nine months ended September 30, 2012 from $52.3 million in the same period a year ago; sales of single-use products increased $3.3 million (5.6%) in the nine months ended 2012 to $62.1 million from $58.8 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 4.5% and single-use products increased 5.7%. 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 $0.7 million (-3.0%) in the quarterly period ended September 30, 2012 to $22.6 million from $23.3 million in the same period a year ago mainly due to lower generator 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 3.0%. Sales of capital equipment decreased $1.3 million (-21.0%) to $4.9 million in the third quarter of 2012 from $6.2 million in the same period a year ago; sales of single-use products increased $0.6 million (3.5%) to $17.7 million in the third quarter of 2012 from $17.1 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 21.0% while single-use products increased 3.5%. We believe the overall decline in capital sales is due to capital purchasing constraints in hospitals due to the depressed economic conditions. Electrosurgery sales decreased $3.4 million (-4.7%) in the nine months ended September 30, 2012 to $69.5 million from $72.9 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 4.8%. Sales of capital equipment decreased $4.2 million (-20.0%) to $16.8 million in the nine months ended September 30, 2012 from $21.0 million in the same period a year ago; sales of single-use products increased $0.8 million (1.5%) to $52.7 million in the nine months ended September 30, 2012 from $51.9 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 19.9% while single-use products increased 1.3%. 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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