UNITED
STATES
SECURITIES
AND EXCHANGE COMMISSION
Washington,
D.C. 20549
FORM
8-K
CURRENT
REPORT
PURSUANT
TO SECTION 13 OR 15 (d) OF THE
SECURITIES
EXCHANGE ACT OF 1934
Date of
Report (Date of earliest event reported): February 5,
2009
CONMED
CORPORATION
(Exact
name of registrant as specified in its charter)
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New
York
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0-16093
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16-0977505
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(State
or other jurisdiction of
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(Commission
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(I.R.S.
Employer
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incorporation
or organization)
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File
Number)
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Identification
No.)
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525
French Road
Utica, New York
13502
(Address
of principal executive offices, including zip code)
(315)
797-8375
(Registrant's
telephone number, including area code)
Check the
appropriate box below if the Form 8-K filing is intended to simultaneously
satisfy the filing obligations of the registrant under any of the following
provisions (See General Instruction A.2 below):
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o
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Written
communications pursuant to Rule 425 under the Securities Act (17 CFR
230.425)
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o
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Soliciting
material pursuant to Rule 14a-12 under the Exchange Act (17 CFR
240.14a-12)
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o
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Pre-commencement
communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR
240.14d-2(b))
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o
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Pre-commencement
communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR
240.13e-4(c))
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Section
2
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Financial
Information
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Item
2.02
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Results
of Operations and Financial
Condition.
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On
February 5, 2009, CONMED Corporation issued a press release announcing financial
results for the fourth quarter of 2008. A copy of this press release
is attached hereto as Exhibit 99.1.
The
information in this Current Report on Form 8-K that is furnished under “Item
2.02. Results of Operations and Financial Condition” and Exhibit 99.1 attached
hereto shall not be deemed “filed” for purposes of Section 18 of the Securities
Act of 1934, nor shall they be deemed incorporated by reference in any filing
under the Securities Act of 1933, except as shall be expressly set forth by
specific reference in such filing.
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Section
9
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Financial
Statements and Exhibits
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Item
9.01
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Financial
Statements and Exhibits.
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(c)
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Exhibits
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The
following exhibit is included herewith:
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Exhibit
No.
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Description
of Exhibit
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99.1
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Press
Release dated February 5, 2009, issued by CONMED
Corporation.
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Signature
Pursuant
to the requirements of the Securities Exchange Act of 1934, the Registrant has
duly caused this report to be signed on its behalf by the undersigned thereunto
duly authorized.
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CONMED
CORPORATION
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(Registrant)
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By: Robert D.
Shallish, Jr.
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Vice
President-Finance and
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Chief
Financial Officer
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Date: February
5, 2009
EXHIBIT
INDEX
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Exhibit
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Number
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Exhibit
Description
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99.1
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Press
Release, dated February 5, 2009, issued by CONMED
Corporation.
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NEWS
RELEASE
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CONTACT:
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CONMED
Corporation
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Robert
Shallish
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Chief
Financial Officer
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315-624-3206
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FD
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Investors: Brian
Ritchie/Theresa Kelleher
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212-850-5600
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FOR
RELEASE: 7:00 AM (Eastern) February 5,
2009
CONMED
Corporation Announces Fourth Quarter and Full Year 2008 Results
-
Conference Call to be Held at 10:00 a.m. ET Today -
Utica, New York,
February 5, 2009 ----- CONMED Corporation (Nasdaq: CNMD) today announced financial
results for the fourth quarter and year-ended December 31, 2008.
For the
fourth quarter ended December 31, 2008, sales were $179.2 million compared to
$189.6 million in the same quarter of 2007. GAAP diluted earnings per
share were $0.36 compared to $0.41 in the fourth quarter of
2007. Non-GAAP diluted earnings per share equaled $0.34 compared to
non-GAAP diluted earnings per share of $0.44 in the 2007 fourth quarter. As
discussed below under “Use of Non-GAAP Financial Measures,” the Company presents
various non-GAAP financial measures in this release. Investors should
consider non-GAAP measures in addition to, and not as a substitute for, or
superior to, financial performance measures prepared in accordance with
GAAP. Please refer to the attached reconciliation between GAAP and
non-GAAP financial measures.
Sales for
the year-ended December 31, 2008 were $742.2 million, an increase of 6.9%
compared to 2007. GAAP diluted earnings per share in 2008 grew to
$1.52 compared to $1.43 in the prior year. On a non-GAAP basis,
diluted earnings per share were $1.54, a 12.4% increase compared to $1.37 in
2007.
“As we
discussed in our January 5, 2009 press release, CONMED’s financial results in
the fourth quarter of 2008 were adversely impacted by exceptionally rapid
changes in foreign currency exchange rates and cash conservation measures of
hospital customers that led to reduced sales of the Company’s capital equipment
products. We are encouraged by the fourth quarter’s 8.4% constant
currency growth of our single-use surgical and patient care products, a rate of
growth in excess of the full year’s constant currency growth for these
products. Historically, approximately 75% of the Company’s sales are
derived from the sale of single-use medical devices,” commented Mr. Joseph J.
Corasanti, President and Chief Executive Officer.
International
sales in the fourth quarter of 2008 were $77.0 million compared to $82.4 million
in the fourth quarter of 2007. Unfavorable fourth quarter currency
exchange rates caused sales to be reduced by $10.7 million compared to exchange
rates in the fourth quarter of 2007. On a constant currency basis,
international sales experienced growth of 6.4% in the fourth
quarter. Sales outside the United States for the full year of 2008
were $328.8 million, growing 13.4% overall. Approximately $2.0
million of the increase in sales for the full year was attributable to foreign
currency exchange resulting in constant currency growth of 12.7% on
international sales compared to 2007. For the 2008 year,
international sales grew to 44.3% of the Company’s total sales compared to 41.7%
of sales in 2007.
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CONMED
News Release Continued
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Page
2 of 12
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February
5, 2009
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CONMED’s
liquidity and cash flow remain strong. During the fourth quarter of
2008, the Company repurchased and retired $25 million face value of its 2.5%
Convertible Notes at a discount of approximately 20%. The repurchase
was funded by CONMED’s own cash resources. The transaction resulted
in a pre-tax gain to the financial statements of approximately $4.4
million. Including the discount on the bond repurchase, the Company
reduced its debt during 2008 approximately $23.5 million. The
Company’s debt to total book capitalization ratio declined to 27.3% at December
31, 2008 compared to 30.6% at December 31, 2007. CONMED’s cash
provided by operating activities was 41% greater than the Company’s net income
in 2008, evidencing the Company’s favorable cash flow.
In
January 2008, the Company completed the purchase of the Italian distributor of
CONMED’s products for a purchase price of approximately $21.8
million. In connection with the acquisition, in the first quarter of
2008, the Company recorded a $1.0 million fair value adjustment to inventory
acquired as a result of the acquisition; the inventory was subsequently sold in
the first quarter of 2008.
Over the
past year and one-half, as previously disclosed, the Company has embarked on a
number of initiatives to improve manufacturing efficiency, including the use of
lean manufacturing techniques. Further, the Company has developed an
operational restructuring plan to be carried out over the next nine months that
includes:
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·
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Start-up
and operation of a 208,000 square foot manufacturing facility in
Chihuahua, Mexico.
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·
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Closure
of two of the Company’s manufacturing facilities in the Utica, New York
area, as well as the current El Paso and Juarez facilities, with the
related operations being transferred to either our headquarters location
in Utica or to the new facility in
Chihuahua.
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·
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Centralization
of certain of the Company’s distribution activities in a new North
American distribution center located in Atlanta,
Georgia.
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During
the execution of this plan, the Company will incur certain charges, including
severance costs associated with the release of approximately 150-200 positions
Company-wide, and the cost of restructuring and relocation
activities. In connection therewith, the Company incurred charges of
$3.3 million in the fourth quarter of 2008 and $4.1 million for the entire 2008
year related to this restructuring and has included these charges in other cost
of sales and other expense.
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CONMED
News Release Continued
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Page
3 of 12
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February
5, 2009
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Following
is a summary of the Company’s sales by product line for the three months ended
December 31, 2008 (in millions):
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Three
Months Ended December 31,
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||||||||||||||||
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Constant
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||||||||||||||||
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Currency
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||||||||||||||||
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2007
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2008
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Growth
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Growth
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(in
millions)
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Arthroscopy
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Single-use
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45.6 | 47.5 | 4.2 | % | 12.1 | % | ||||||||||
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Capital
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33.0 | 22.6 | -31.5 | % | -28.2 | % | ||||||||||
| 78.6 | 70.1 | -10.8 | % | -4.8 | % | |||||||||||
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Powered
Surgical Instruments
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Single-use
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18.7 | 19.2 | 2.7 | % | 12.8 | % | ||||||||||
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Capital
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20.7 | 17.5 | -15.5 | % | -6.8 | % | ||||||||||
| 39.4 | 36.7 | -6.9 | % | 2.5 | % | |||||||||||
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Electrosurgery
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Single-use
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16.4 | 17.9 | 9.1 | % | 11.6 | % | ||||||||||
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Capital
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6.6 | 6.5 | -1.5 | % | 3.0 | % | ||||||||||
| 23.0 | 24.4 | 6.1 | % | 9.1 | % | |||||||||||
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Endoscopic
Technologies
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Single-use
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13.6 | 12.4 | -8.8 | % | -4.4 | % | ||||||||||
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Endosurgery
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Single-use
and reposable
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14.5 | 16.2 | 11.7 | % | 17.2 | % | ||||||||||
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Patient
Care
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Single-use
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20.5 | 19.4 | -5.4 | % | -4.4 | % | ||||||||||
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Total
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||||||||||||||||
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Single-use
and reposable
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129.3 | 132.6 | 2.6 | % | 8.4 | % | ||||||||||
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Capital
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60.3 | 46.6 | -22.7 | % | -17.4 | % | ||||||||||
| 189.6 | 179.2 | -5.5 | % | 0.2 | % | |||||||||||
In the
fourth quarter of 2008, the Company’s single-use medical devices experienced
growth of 8.4% in constant currency, with over 75% of these products growing in
excess of 11% in constant currency. CONMED’s capital products, which
generally fall into the capital expenditure category of hospital purchases such
as our surgical video imaging cameras and powered surgical instrument
handpieces, experienced a fourth quarter sales decline of 17.4% in constant
currency. A majority of the percentage decline in fourth quarter
capital equipment revenues is due to a difficult comparison to sales in the
fourth quarter of 2007 of approximately $10 million
of integrated operating room system installations as an unusually large number
of hospital customers chose to delay installations until late in that
year. Integrated systems installations in 2008, while approximately
the same total as 2007, were spread evenly throughout 2008 rather than falling
into one quarter.
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CONMED
News Release Continued
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Page
4 of 12
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February
5, 2009
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Following
is a summary of full year 2008 sales by product line in millions of
dollars:
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Year
Ended December 31,
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||||||||||||||||
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Constant
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||||||||||||||||
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Currency
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||||||||||||||||
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2007
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2008
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Growth
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Growth
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(in
millions)
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Arthroscopy
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Single-use
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172.9 | 195.6 | 13.1 | % | 12.4 | % | ||||||||||
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Capital
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91.6 | 96.3 | 5.1 | % | 4.7 | % | ||||||||||
| 264.5 | 291.9 | 10.4 | % | 9.8 | % | |||||||||||
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Powered
Surgical Instruments
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||||||||||||||||
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Single-use
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73.7 | 79.4 | 7.7 | % | 7.3 | % | ||||||||||
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Capital
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75.6 | 76.3 | 0.9 | % | 0.5 | % | ||||||||||
| 149.3 | 155.7 | 4.3 | % | 3.8 | % | |||||||||||
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Electrosurgery
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||||||||||||||||
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Single-use
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66.5 | 72.1 | 8.4 | % | 8.4 | % | ||||||||||
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Capital
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25.6 | 28.4 | 10.9 | % | 10.9 | % | ||||||||||
| 92.1 | 100.5 | 9.1 | % | 9.1 | % | |||||||||||
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Endoscopic
Technologies
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Single-use
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52.7 | 51.3 | -2.7 | % | -2.3 | % | ||||||||||
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Endosurgery
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Single-use
and reposable
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58.9 | 64.4 | 9.3 | % | 9.7 | % | ||||||||||
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Patient
Care
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Single-use
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76.8 | 78.4 | 2.1 | % | 2.1 | % | ||||||||||
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Total
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||||||||||||||||
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Single-use
and reposable
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501.5 | 541.2 | 7.9 | % | 7.7 | % | ||||||||||
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Capital
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192.8 | 201.0 | 4.3 | % | 3.8 | % | ||||||||||
| 694.3 | 742.2 | 6.9 | % | 6.6 | % | |||||||||||
Outlook
As
described in the Company’s business update press release last month, the change
in the economic climate during the last few months has been remarkably swift,
with extreme volatility in foreign currency exchange rates and reduced capital
spending and cash conservation throughout the healthcare provider
industry. We reiterate the guidance provided at that time and
estimate 2009 sales of approximately $740 million and non-GAAP diluted earnings
per share of $1.15 - $1.25. This forecast for 2009 assumes a constant
currency growth rate of approximately 4%-5% over 2008 reported
sales. However, at 2009 estimated foreign currency rates of exchange,
the 30% of the Company’s sales denominated in foreign currency would decline
approximately 15% in U.S. dollars compared to average rates of exchange in 2008,
thus off-setting the constant currency growth. GAAP earnings per
share in 2009 is anticipated to be lower than the non-GAAP amounts as the
Company completes its previously disclosed manufacturing restructuring plans and
incurs costs related thereto.
For the
first quarter of 2009, the Company estimates that sales will approximate $170 -
$175 million, with non-GAAP diluted earnings per share of $0.23 -
$0.28.
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CONMED
News Release Continued
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Page
5 of 12
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February
5, 2009
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“While
2009 will be a challenging year for many organizations, including CONMED, we
will remain focused on our goals to strengthen the Company by completing the
manufacturing restructuring plan and introducing new products to the
market. We are well-positioned for long-term growth with a product
offering that meets the needs of our hospital customers and with an experienced
team of managers and staff,” noted Mr. Corasanti.
Convertible note interest
expense
In
accordance with FSP APB 14-1 issued by the Financial Accounting Standards Board,
beginning in 2009 the Company will be required to record a non-cash interest
expense related to its convertible notes to bring the effective interest rate to
a level approximating that of a non-convertible note of similar size and
tenor. We currently estimate that this additional non-cash pre-tax
charge will approximate $5.2 million or $0.11 per share. The
pronouncement also requires that a similar adjustment be made in previously
issued financial statements to facilitate comparative analysis. The
earnings per share amounts provided above for 2008 and 2009 do not include this
convertible note interest adjustment.
Use of Non-GAAP Financial
Measures
Management
has disclosed financial measurements in this press announcement that present
financial information that is not in accordance with Generally Accepted
Accounting Principles (“GAAP”). These measurements are not a
substitute for GAAP measurements, although Company management uses these
measurements as aids in monitoring the Company’s on-going financial performance
from quarter-to-quarter and year-to-year on a regular basis, and for
benchmarking against other medical technology companies. Non-GAAP net
income and non-GAAP earnings per share measure the income of the Company
excluding unusual credits or charges that are considered by management to be
outside of the normal on-going operations of the Company. Management
uses and presents non-GAAP net income and non-GAAP earnings per share because
management believes that in order to properly understand the Company’s short and
long-term financial trends, the impact of unusual items should be eliminated
from on-going operating activities. These adjustments for unusual
items are derived from facts and circumstances that vary in frequency and impact
on the Company’s results of operations. Management uses non-GAAP net
income and non-GAAP earnings per share to forecast and evaluate the operational
performance of the Company as well as to compare results of current periods to
prior periods on a consistent basis.
Non-GAAP
financial measures used by the Company may be calculated differently from, and
therefore may not be comparable to, similarly titled measures used by other
companies. Investors should consider non-GAAP measures in addition
to, and not as a substitute for, or superior to, financial performance measures
prepared in accordance with GAAP.
The
Company has not presented a reconciliation of GAAP to non-GAAP estimated
earnings for 2009 because such adjustments are not presently
determinable.
Conference
Call
The
Company will webcast its fourth quarter and full year 2008 conference call live
over the Internet on Thursday, February 5, 2009 at 10:00 a.m. Eastern
Time. This broadcast can be accessed from CONMED's web site at www.conmed.com.
Replays of the call will be made available through February 13,
2009.
CONMED
Profile
CONMED is
a medical technology company with an emphasis on surgical devices and equipment
for minimally invasive procedures and monitoring. The Company’s
products serve the clinical areas of arthroscopy, powered surgical instruments,
electrosurgery, cardiac monitoring disposables, endosurgery and endoscopic
technologies. They are used by surgeons and physicians in a variety
of specialties including orthopedics, general surgery, gynecology, neurosurgery,
and gastroenterology. Headquartered in Utica, New York, the Company’s
3,200 employees distribute its products worldwide from several manufacturing
locations.
Forward Looking
Information
This
press release contains forward-looking statements based on certain assumptions
and contingencies that involve risks and uncertainties. The
forward-looking statements are made pursuant to the safe harbor provisions of
the Private Securities Litigation Reform Act of 1995 and relate to the Company’s
performance on a going-forward basis. The forward-looking statements
in this press release involve risks and uncertainties which could cause actual
results, performance or trends, to differ materially from those expressed in the
forward-looking statements herein or in previous disclosures. The
Company believes that all forward-looking statements made by it have a
reasonable basis, but there can be no assurance that management’s expectations,
beliefs or projections
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CONMED
News Release Continued
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Page
6 of 12
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February
5, 2009
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as
expressed in the forward-looking statements will actually occur or prove to be
correct. In addition to general industry and economic conditions,
factors that could cause actual results to differ materially from those
discussed in the forward-looking statements in this press release include, but
are not limited to: (i) the failure of any one or more of the assumptions stated
above, to prove to be correct; (ii) the risks relating to forward-looking
statements discussed in the Company’s Annual Report on Form 10-K for the fiscal
year ended December 31, 2007; (iii) cyclical purchasing patterns from customers,
end-users and dealers; (iv) timely release of new products, and
acceptance of such new products by the market; (v) the introduction of new
products by competitors and other competitive responses; (vi) the possibility
that any new acquisition or other transaction may require the Company to
reconsider its financial assumptions and goals/targets; and/or (vii) the
Company’s ability to devise and execute strategies to respond to market
conditions.
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CONMED
News Release Continued
|
Page
7 of 12
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February
5, 2009
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CONMED
CORPORATION
CONSOLIDATED
STATEMENTS OF INCOME
(in
thousands except per share amounts)
(unaudited)
|
Three
months ended
|
Twelve
months ended
|
|||||||||||||||
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December
31,
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December
31,
|
|||||||||||||||
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2007
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2008
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2007
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2008
|
|||||||||||||
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Net
sales
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$ | 189,568 | $ | 179,246 | $ | 694,288 | $ | 742,183 | ||||||||
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Cost
of sales
|
93,886 | 87,737 | 345,163 | 356,321 | ||||||||||||
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Cost
of sales, other - Note A
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- | 2,470 | - | 3,481 | ||||||||||||
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Gross
profit
|
95,682 | 89,039 | 349,125 | 382,381 | ||||||||||||
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Selling
and administrative
|
65,023 | 66,474 | 240,541 | 272,437 | ||||||||||||
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Research
and development
|
7,417 | 7,673 | 30,400 | 33,108 | ||||||||||||
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Other
expense (income) – Note B
|
1,295 | 868 | (2,807 | ) | 1,577 | |||||||||||
| 73,735 | 75,015 | 268,134 | 307,122 | |||||||||||||
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Income
from operations
|
21,947 | 14,024 | 80,991 | 75,259 | ||||||||||||
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Gain
on early extinguishment
|
||||||||||||||||
|
of
debt
|
- | 4,376 | - | 4,376 | ||||||||||||
|
Interest
expense
|
3,528 | 2,315 | 16,234 | 10,372 | ||||||||||||
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Income
before income taxes
|
18,419 | 16,085 | 64,757 | 69,263 | ||||||||||||
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Provision
for income taxes
|
6,585 | 5,508 | 23,301 | 24,702 | ||||||||||||
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Net
income
|
$ | 11,834 | $ | 10,577 | $ | 41,456 | $ | 44,561 | ||||||||
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Per share
data:
|
||||||||||||||||
|
Net
Income
|
||||||||||||||||
|
Basic
|
$ | .41 | $ | .36 | $ | 1.46 | $ | 1.55 | ||||||||
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Diluted
|
.41 | .36 | 1.43 | 1.52 | ||||||||||||
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Weighted
average common shares
|
||||||||||||||||
|
Basic
|
28,613 | 29,019 | 28,416 | 28,796 | ||||||||||||
|
Diluted
|
29,057 | 29,254 | 28,965 | 29,227 | ||||||||||||
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CONMED
News Release Continued
|
Page
8 of 12
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February
5, 2009
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Note A - Included in
cost of sales in the three and twelve months ended December 31, 2008 are $2.5
million in costs related to the startup of a new manufacturing facility in
Chihuahua, Mexico and the consolidation of two of the Company’s three Utica, New
York area manufacturing facilities. Also included in cost of sales in
the twelve months ended December 31, 2008 is a $1.0 million purchase accounting
fair value adjustment for inventory acquired in connection with the purchase of
our Italian distributor.
Note B - Included in
other expense (income) in the three and twelve months ended December 31, 2007
are $1.3 million in costs associated with the settlement of a product liability
claim and defense related costs. Also included in other expense
(income) in the twelve months ended December 31, 2007 are $0.2 million in costs
related to the termination of a product offering, $1.8 million in facility
consolidation costs and a $6.1 million gain on a legal
settlement. Included in other expense (income) in the three and
twelve months ended December 31, 2008 are $0.9 million and $1.6 million,
respectively, in costs related to the consolidation of certain of the Company’s
distribution activities.
|
CONMED
News Release Continued
|
Page
9 of 12
|
February
5, 2009
|
CONMED
CORPORATION
CONSOLIDATED
CONDENSED BALANCE SHEETS
(in
thousands)
(unaudited)
ASSETS
|
December
31,
|
||||||||
|
2007
|
2008
|
|||||||
|
Current
assets:
|
||||||||
|
Cash
and cash equivalents
|
$ | 11,695 | $ | 11,811 | ||||
|
Accounts
receivable, net
|
80,642 | 96,515 | ||||||
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Inventories
|
164,969 | 159,976 | ||||||
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Deferred
income taxes
|
11,697 | 14,742 | ||||||
|
Other
current assets
|
10,019 | 11,218 | ||||||
|
Total
current assets
|
279,022 | 294,262 | ||||||
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Property,
plant and equipment, net
|
123,679 | 143,737 | ||||||
|
Goodwill,
net
|
289,508 | 290,245 | ||||||
|
Other
intangible assets, net
|
191,807 | 195,939 | ||||||
|
Other
assets
|
9,935 | 7,478 | ||||||
|
Total
assets
|
$ | 893,951 | $ | 931,661 | ||||
|
LIABILITIES
AND SHAREHOLDERS' EQUITY
|
||||||||
|
Current
liabilities:
|
||||||||
|
Current
portion of long-term debt
|
$ | 3,349 | $ | 3,185 | ||||
|
Other
current liabilities
|
73,935 | 77,840 | ||||||
|
Total
current liabilities
|
77,284 | 81,025 | ||||||
|
Long-term
debt
|
219,485 | 196,189 | ||||||
|
Deferred
income taxes
|
71,188 | 83,498 | ||||||
|
Other
long-term liabilities
|
20,992 | 39,215 | ||||||
|
Total
liabilities
|
388,949 | 399,927 | ||||||
|
Shareholders'
equity:
|
||||||||
|
Capital
accounts
|
220,657 | 235,295 | ||||||
|
Retained
earnings
|
284,850 | 327,471 | ||||||
|
Accumulated
other comprehensive income (loss)
|
(505 | ) | (31,032 | ) | ||||
|
Total equity
|
505,002 | 531,734 | ||||||
|
Total
liabilities and shareholders' equity
|
$ | 893,951 | $ | 931,661 | ||||
|
CONMED
News Release Continued
|
Page
10 of 12
|
February
5, 2009
|
CONMED
CORPORATION
CONDENSED
STATEMENT OF CASH FLOWS
(in
thousands)
(unaudited)
|
Twelve
months ended
|
||||||||
|
December
31,
|
||||||||
|
2007
|
2008
|
|||||||
|
Cash
flows from operating activities:
|
||||||||
|
Net
income
|
$ | 41,456 | $ | 44,561 | ||||
|
Adjustments
to reconcile net income
|
||||||||
|
to
net cash provided by operating activities:
|
||||||||
|
Depreciation
and amortization
|
31,534 | 32,336 | ||||||
|
Stock-based
payment expense
|
3,771 | 4,178 | ||||||
|
Deferred
income taxes
|
16,714 | 16,036 | ||||||
|
Gain
on early extinguishment of debt
|
- | (4,376 | ) | |||||
|
Contributions
to pension plans in excess of net pension cost
|
(5,112 | ) | (5,425 | ) | ||||
|
Increase
(decrease) in cash flows from changes
in assets and liabilities:
|
||||||||
|
Sale
of accounts receivable
|
1,000 | (3,000 | ) | |||||
|
Accounts
receivable
|
(6,301 | ) | (3,735 | ) | ||||
|
Inventories
|
(22,621 | ) | (8,110 | ) | ||||
|
Accounts
payable
|
(2,414 | ) | (7,043 | ) | ||||
|
Income
taxes
|
3,118 | 7,205 | ||||||
|
Accrued
compensation and benefits
|
2,012 | 646 | ||||||
|
Other assets
|
(83 | ) | (4,469 | ) | ||||
|
Other liabilities
|
2,820 | (5,917 | ) | |||||
|
Net
cash provided by operating activities
|
65,894 | 62,887 | ||||||
|
Cash
flow from investing activities:
|
||||||||
|
Purchases
of property, plant, and equipment, net
|
(20,910 | ) | (35,879 | ) | ||||
|
Payments
related to business acquisitions
|
(5,933 | ) | (22,023 | ) | ||||
|
Net
cash used in investing activities
|
(26,843 | ) | (57,902 | ) | ||||
|
Cash
flow from financing activities:
|
||||||||
|
Payments
on debt
|
(44,990 | ) | (22,707 | ) | ||||
|
Proceeds
of debt
|
- | 4,000 | ||||||
|
Net
proceeds from common stock issued under employee plans
|
11,355 | 7,347 | ||||||
|
Other,
net
|
(1,770 | ) | 4,270 | |||||
|
Net
cash used in financing activities
|
(35,405 | ) | (7,090 | ) | ||||
|
Effect
of exchange rate change
|
||||||||
|
on
cash and cash equivalents
|
4,218 | 2,221 | ||||||
|
Net
increase in cash and cash equivalents
|
7,864 | 116 | ||||||
|
Cash
and cash equivalents at beginning of period
|
3,831 | 11,695 | ||||||
|
Cash
and cash equivalents at end of period
|
$ | 11,695 | $ | 11,811 | ||||
|
CONMED
News Release Continued
|
Page
11 of 12
|
February
5, 2009
|
CONMED
CORPORATION
RECONCILIATION
OF REPORTED NET INCOME TO NON-GAAP NET INCOME
BEFORE
UNUSUAL ITEMS
(In
thousands except per share amounts)
(unaudited)
|
Three
months ended
|
||||||||
|
December 31,
|
||||||||
|
2007
|
2008
|
|||||||
|
Reported
net income
|
$ | 11,834 | $ | 10,577 | ||||
|
New
plant / facility consolidation costs included in cost of
sales
|
- | 2,470 | ||||||
|
Total
cost of sales, other
|
- | 2,470 | ||||||
|
Facility
consolidation costs included in other expense (income)
|
- | 868 | ||||||
|
Settlement
of product liability claim
|
1,295 | - | ||||||
|
Total
other expense (income)
|
1,295 | 868 | ||||||
|
Gain
on early extinguishment of debt
|
- | (4,376 | ) | |||||
|
Total
unusual expense (income) before income taxes
|
1,295 | (1,038 | ) | |||||
|
Provision
(benefit) for income taxes on unusual expense
|
(466 | ) | 374 | |||||
|
Net
income before unusual items
|
$ | 12,663 | $ | 9,913 | ||||
|
Per
share data:
|
||||||||
|
Reported
net income
|
||||||||
|
Basic
|
$ | .41 | $ | .36 | ||||
|
Diluted
|
.41 | .36 | ||||||
|
Net
income before unusual items
|
||||||||
|
Basic
|
$ | .44 | $ | .34 | ||||
|
Diluted
|
.44 | .34 | ||||||
Management
has provided the above reconciliation of net income before unusual items as an
additional measure that investors can use to compare operating performance
between reporting periods. Management believes this reconciliation
provides a useful presentation of operating performance as discussed in the
section “Use of Non-GAAP Financial Measures” above.
|
CONMED
News Release Continued
|
Page
12 of 12
|
February
5, 2009
|
CONMED
CORPORATION
RECONCILIATION
OF REPORTED NET INCOME TO NON-GAAP NET INCOME
BEFORE
UNUSUAL ITEMS
(In
thousands except per share amounts)
(unaudited)
|
Twelve
months ended
|
||||||||
|
December, 31,
|
||||||||
|
2007
|
2008
|
|||||||
|
Reported
net income
|
$ | 41,456 | $ | 44,561 | ||||
|
Fair
value inventory purchase accounting adjustment
|
||||||||
|
included
in cost of sales
|
- | 1,011 | ||||||
|
New
plant / facility consolidation costs included in cost of
sales
|
- | 2,470 | ||||||
|
Total
cost of sales, other
|
- | 3,481 | ||||||
|
Termination
of product offering
|
148 | - | ||||||
|
Facility
consolidation costs included in other expense (income)
|
1,822 | 1,577 | ||||||
|
Gain
on legal settlement
|
(6,072 | ) | - | |||||
|
Settlement
of product liability claim
|
1,295 | - | ||||||
|
Total
other expense (income)
|
(2,807 | ) | 1,577 | |||||
|
Gain
on early extinguishment of debt
|
- | (4,376 | ) | |||||
|
Total
unusual expense (income) before income taxes
|
(2,807 | ) | 682 | |||||
|
Provision
(benefit) for income taxes on unusual expense
|
1,011 | (245 | ) | |||||
|
Net
income before unusual items
|
$ | 39,660 | $ | 44,998 | ||||
|
Per
share data:
|
||||||||
|
Reported
net income
|
||||||||
|
Basic
|
$ | 1.46 | $ | 1.55 | ||||
|
Diluted
|
1.43 | 1.52 | ||||||
|
Net
income before unusual items
|
||||||||
|
Basic
|
$ | 1.40 | $ | 1.56 | ||||
|
Diluted
|
1.37 | 1.54 | ||||||
Management
has provided the above reconciliation of net income before unusual items as an
additional measure that investors can use to compare operating performance
between reporting periods. Management believes this reconciliation
provides a useful presentation of operating performance as discussed in the
section “Use of Non-GAAP Financial Measures” above.