SEC Filing | CONMED

View:

Download DOC

Download PDF

Download XLS

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): July 26, 2012

CONMED CORPORATION

(Exact name of registrant as specified in its charter)

New York	0-16093	16-0977505
(State or other jurisdiction of	(Commission	(I.R.S. Employer
incorporation or organization)	File Number)	Identification No.)

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):

Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Section 2

Financial Information

Item 2.02

Results of Operations and Financial Condition.

On July 26, 2012, CONMED Corporation issued a press release announcing financial results for the second quarter of 2012. 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.

Section 9

Financial Statements and Exhibits

Item 9.01

Financial Statements and Exhibits.

(c)

Exhibits

The following exhibit is included herewith:

	Exhibit No.	Description of Exhibit

	99.1	Press Release dated July 26, 2012, issued by CONMED Corporation.

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.

	CONMED CORPORATION
	(Registrant)


	By:	Robert D. Shallish, Jr.
		Vice President-Finance and
		Chief Financial Officer

Date: July 26, 2012

EXHIBIT INDEX

Exhibit
Number	Exhibit Description

99.1	Press Release, dated July 26, 2012, issued by CONMED Corporation.

	NEWS RELEASE

	CONTACT:
	CONMED Corporation
	Robert Shallish
	Chief Financial Officer
	315-624-3206

	FTI Consulting
	Investors: Brian Ritchie
	212-850-5600

FOR RELEASE: 7:00 AM (Eastern) July 26, 2012

CONMED Corporation Announces Second Quarter 2012 Financial Results

- Sales Increase 3.5%

- GAAP EPS Increases 20%

- Adjusted EPS Increases 23%

- Conference Call to be Held at 10:00 a.m. ET Today -

Utica, New York, July 26, 2012 ----- CONMED Corporation (Nasdaq: CNMD) today announced financial results for the second quarter ended June 30, 2012.

“CONMED delivered strong earnings and generated solid cash flow during the second quarter,” commented Mr. Joseph J. Corasanti, President and CEO. “Earnings per share grew 20% and adjusted earnings per share increased 23% on overall sales growth of 3.5%. Single-use products continued their momentum from the first quarter, achieving overall revenue growth of 7.5%. Moreover, we continue to improve our operating and EBITDA margin metrics.”

As discussed below under “Use of Non-GAAP Financial Measures,” the Company presents various non-GAAP adjusted financial measures in this release. Investors should consider adjusted measures in addition to, and not as a substitute for, or superior to, financial performance measures prepared in accordance with generally accepted accounting principles (“GAAP”). Please refer to the attached reconciliation between GAAP and adjusted financial measures.

Second Quarter 2012 Financial Highlights:

Sales grew to $189.7 million, an increase of 3.5% (organic decline of 0.4%).

Single-use products comprised 81.1% of total revenues and grew 7.5%, while sales of capital products declined 10.7%.

Diluted earnings per share (GAAP) grew 20.0% to $0.36.

Adjusted diluted earnings per share grew 22.9% to $0.43.

Adjusted operating margin expanded 90 basis points to 10.6%.

CONMED News Release Continued

Page 2 of 13

July 26, 2012

GAAP operating margin was 9.0%.

Adjusted EBITDA margin expanded 160 basis points to 16.4%.

GAAP EBITDA margin operating margin was 14.8%.

The Board of Directors continued the cash dividend policy and declared the second quarterly dividend of $0.15 per share, which was paid on July 6, 2012.

Six Months 2012 Financial Highlights

Sales grew to $384.0 million, an increase of 4.7% (increase of 0.7% organic).

Single-use products comprised 80.3% of total revenues and grew 8.3%, while capital products declined 7.6%.

Diluted earnings per share (GAAP) grew 16.4% to $0.71

Adjusted earnings per share grew 18.1% to $0.85

Adjusted operating margin expanded 60 basis points to 10.6%.

GAAP operating margin was 8.9%.

Adjusted EBITDA margin expanded 160 basis points to 16.5%.

GAAP EBITDA margin was 14.8%

International sales in the second quarter and first half of 2012 were $96.4 million and $194.6 million, respectively, slightly more than 50.0% of total sales. The recent volatility in foreign currency exchange rates was mitigated by the Company’s currency hedging. Net of the hedges, foreign currency exchange rates were approximately the same in 2012 as those of 2011.

Cash provided by operating activities in the second quarter of 2012 increased from the prior year period and amounted to $25.6 million. For the six months ended June 2012, cash provided by operating activities totaled $33.3 million. As previously disclosed, cash flow in the first quarter of 2012 was affected by a contribution of $6.5 million to the Company’s frozen pension plan and payment of incentive compensation.

Outlook

“CONMED has demonstrated superior earnings and cash flow in the first half of 2012 and we expect to continue these trends in the second half of the year,” continued Mr. Corasanti. "Therefore, we are reiterating the previously provided full year 2012 earnings guidance of adjusted earnings per share of $1.75 - $1.85. As to the top-line, while single use product sales continue to be strong, capital product sales in the first half of 2012 were lower than anticipated due to lingering global economic headwinds. Accordingly, the sales forecast for 2012 has been revised to $765 - $775 million from $775 - $785 million.”

“For the third quarter of 2012, we anticipate sales will approximate $180 - $185 million and adjusted earnings per share are forecasted to be $0.38 - $0.42,” noted Mr. Corasanti.

The sales and earnings forecasts have been developed using June 2012 currency exchange rates and take into account the currency hedges entered into by the Company. CONMED estimates that 80% of the currency exposure is hedged for 2012 at the following average annual exchange rates: Euro - $1.41, CAD - $1.00, GPB - $1.60 and AUD - $1.00.

CONMED News Release Continued

Page 3 of 13

July 26, 2012

The adjusted estimates for the second quarter and full year 2012 exclude unusual matters, such as the manufacturing restructuring costs expected to be incurred in 2012 due to the relocation of manufacturing activities from the Santa Barbara, California site to the Company’s facilities in Chihuahua, Mexico and Largo, Florida. Marketing and R&D activities will remain in Santa Barbara, as previously disclosed. Additionally, the Company has announced the consolidation of the Tampere, Finland location into United States facilities. The consolidation will occur over the next twelve months and costs related to this consolidation are excluded from the estimates above.

Association with The Musculoskeletal Transplant Foundation

On January 3, 2012, CONMED became the exclusive world-wide marketing representative of MTF’s sports medicine allograft tissues. In accordance with MTF’s commitment to the stewardship of the donated gift, the organization maintains full responsibility for all activities related to donor suitability, quality acceptance, processing, storage, and distribution of the tissue, as well as reimbursement of service fees related to the sports medicine allografts. CONMED’s team of surgical representatives serves as the educational resource to surgeons and facilities concerning the suitability of MTF allografts for ligament reconstruction, cartilage repair and meniscal transplantation, as well as for biologic solutions, including scaffolds and fixation devices. MTF will share 50% of the service revenue with CONMED for these educational activities.

Upon signing of the agreement, CONMED paid $63 million to MTF. The agreement calls for additional consideration to be paid to MTF of $84 million over the next four years contingent upon MTF providing an adequate supply of tissue. We have recorded the full amount of the consideration as a long term asset and amortize this amount ratably over the 25 year life of the agreement. Remaining contingent payments to MTF have been recorded as other liabilities. Revenues from the MTF association amounted to $7.2 million in the second quarter of 2012 and $14.7 million for the first six month of 2012.

Unusual charges

During the first half of 2012, the Company continued the on-going consolidation of certain administrative functions and the transfer of additional product lines to its Mexican manufacturing facility and began the consolidation of the Tampere facility. Also incurred were integration costs relative to the purchase of a distributor in northern Europe and litigation costs associated with a contractual dispute with a former distributor. Expenses associated with these activities, including severance and relocation costs, amounted to $1.9 million, net of tax, in the second quarter of 2012 and $4.1 million net of tax for the six months. These charges are included in the GAAP earnings per share set forth above and are excluded from the adjusted results. For the remainder of 2012, the Company presently anticipates incurring additional pre-tax restructuring costs of $5.0 - $6.0 million on projects currently in process.

Use of non-GAAP financial measures

Management has disclosed adjusted financial measurements in this press announcement that present financial information that is not in accordance with generally accepted accounting principles. 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. Adjusted net income and adjusted 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 adjusted net income and adjusted 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 adjusted net income and adjusted 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. Adjusted 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 adjusted measures in addition to, and not as a substitute for, or superior to, financial performance measures prepared in accordance with GAAP.

CONMED News Release Continued

Page 4 of 13

July 26, 2012

Conference call

The Company will webcast its second quarter 2012 conference call live over the Internet at 10:00 a.m. Eastern Time on Thursday, July 26, 2012. This webcast can be accessed from CONMED’s web site at www.conmed.com. Replays of the call will be made available through August 5, 2012.

CONMED profile

CONMED is a medical technology company with an emphasis on surgical devices and equipment for minimally invasive procedures and patient 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 3,400 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 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, 2011; (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; (vii) increasing costs for raw materials or transportation (viii) the risk of a lack of allograft tissues due to reduced donations of such tissues or due to tissues not meeting the appropriate high standards for screening and/or processing of such tissues; and/or (ix) the Company’s ability to devise and execute strategies to respond to market conditions.

CONMED News Release Continued

Page 5 of 13

July 26, 2012

CONMED CORPORATION

CONSOLIDATED STATEMENTS OF INCOME

(in thousands except per share amounts)

(unaudited)

	Three months ended				Six months ended
	June 30,				June 30,
	2011		2012		2011		2012

Net sales	$	183,236	$	189,695	$	366,686	$	384,011

Cost of sales		90,795		88,761		177,775		180,692
Cost of sales, other – Note A		986		1,202		1,740		2,676

Gross profit		91,455		99,732		187,171		200,643

Selling and administrative		67,862		73,707		137,940		148,513
Research and development		6,797		7,192		14,478		14,287
Other expense– Note B		98		1,775		792		3,763
		74,757		82,674		153,210		166,563

Income from operations		16,698		17,058		33,961		34,080

Amortization of debt discount		1,113		—		2,207		—

Interest expense		1,707		1,551		3,512		2,988

Income before income taxes		13,878		15,507		28,242		31,092

Provision for income taxes		5,198		5,211		10,567		10,828

Net income	$	8,680	$	10,296	$	17,675	$	20,264

Per share data:

Net Income
Basic	$	.31	$	.36	$	.62	$	.72
Diluted		.30		.36		.61		.71

Weighted average common shares
Basic		28,448		28,327		28,356		28,178
Diluted		28,883		28,672		28,820		28,577

Note A –Included in cost of sales, other in the three and six months ended June 30, 2011 are $1.0 million and $1.7 million, respectively, related to the consolidation of our production facilities. For the three and six months ending June 30, 2012, we incurred $1.2 million and $2.7 million, respectively, related to the consolidation of our production facilities.

Note B –Included in other expense in the three and six months ended June 30, 2011 are $0.1 million and $0.8 million, respectively, related to consolidating certain administrative functions at our Utica, New York facility. For the three and six months ending June 30, 2012, we incurred $1.2 million and $1.5 million, respectively, related to administrative consolidation expense. Also included in other expense in the three and six months ending June 30, 2012 are $0.5 million and $1.6 million, respectively, in legal costs associated with a contractual dispute with a former distributor. Included in the six months ending June 30, 2012 is $0.7 million in costs associated with the acquisition of our former distributor in the Nordic region of Europe.

CONMED News Release Continued

Page 6 of 13

July 26, 2012

CONMED CORPORATION

CONSOLIDATED CONDENSED BALANCE SHEETS

(in thousands)

(unaudited)

ASSETS

	December 31,			June 30,
	2011			2012
Current assets:
Cash and cash equivalents	$	26,048		$	16,246
Accounts receivable, net		135,641			136,095
Inventories		168,438			159,151
Deferred income taxes		10,283			10,906
Other current assets		16,314			15,037
Total current assets		356,724			337,435

Property, plant and equipment, net		139,187			140,844
Deferred income taxes		2,389			2,443
Goodwill		234,815			234,839
Other intangible assets, net		195,531			191,741
Other assets		6,948			153,929
Total assets	$	935,594		$	1,061,231

LIABILITIES AND SHAREHOLDERS' EQUITY

Current liabilities:
Current portion of long-term debt	$	54,557		$	22,534
Other current liabilities		76,627			112,713
Total current liabilities		131,184			135,247

Long-term debt		88,952			145,437
Deferred income taxes		92,785			99,417
Other long-term liabilities		49,602			87,747
Total liabilities		362,523			467,848

Shareholders' equity:
Capital accounts		244,980			255,044
Retained earnings		354,439			366,219
Accumulated other comprehensive loss		(26,348	)		(27,880	)
Total shareholders’ equity		573,071			593,383

Total liabilities and shareholders' equity	$	935,594		$	1,061,231

CONMED News Release Continued

Page 7 of 13

July 26, 2012

CONMED CORPORATION

CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS

(in thousands)

(unaudited)

	Six months ended
	June 30,
	2011			2012
Cash flows from operating activities:
Net income	$	17,675		$	20,264
Adjustments to reconcile net income
to net cash provided by operating activities:
Depreciation and amortization		21,047			23,064
Stock-based compensation expense		2,232			2,574
Deferred income taxes		8,981			6,091
Increase (decrease) in cash flows from changes in assets and liabilities:
Accounts receivable		(4,541	)		(1,027	)
Inventories		78			3,078
Accounts payable		2,309			1,345
Income taxes payable		143			(4,589	)
Accrued compensation and benefits		(5,684	)		(6,730	)
Other assets		(2,226	)		(1,779	)
Other liabilities		209			(9,014	)
Net cash provided by operating activities		40,223			33,277

Cash flows from investing activities:
Purchases of property, plant, and equipment		(8,576	)		(11,596	)
Payments related to business acquisitions and distribution agreement		(72	)		(64,116	)
Net cash used in investing activities		(8,648	)		(75,712	)

Cash flows from financing activities:
Payments on debt		(23,113	)		(32,538	)
Proceeds from debt		—			57,000
Dividend payments from common stock		—			(4,328	)
Net proceeds from common stock issued under employee plans		5,495			7,868
Other, net		(3,148	)		4,925
Net cash provided by (used in) financing activities		(20,766	)		32,927

Effect of exchange rate change
on cash and cash equivalents		1,105			(294	)

Net increase (decrease) in cash and cash equivalents		11,914			(9,802	)

Cash and cash equivalents at beginning of period		12,417			26,048

Cash and cash equivalents at end of period	$	24,331		$	16,246

CONMED News Release Continued

Page 8 of 13

July 26, 2012

CONMED CORPORATION

RECONCILIATION OF REPORTED NET INCOME TO NON-GAAP NET INCOME

BEFORE UNUSUAL ITEMS AND AMORTIZATION OF DEBT DISCOUNT

Three Months Ended June 30, 2011 and 2012

(in thousands except per share amounts)

(unaudited)

	2011			2012

Reported net income	$	8,680		$	10,296

Facility consolidation costs included in cost of sales		986			1,202

Administrative consolidation costs included in other expense		98			1,231

Legal costs included in other expense		—			544

Total other expense		98			1,775

Amortization of debt discount		1,113			—

Unusual expense before income taxes		2,197			2,977

Provision (benefit) for income taxes on unusual expenses		(801	)		(1,072	)

Net income before unusual items and amortization of debt discount	$	10,076		$	12,201


Per share data:

Reported net income
Basic	$	0.31		$	0.36
Diluted		0.30			0.36

Net income before unusual items and amortization of debt discount
Basic	$	0.35		$	0.43
Diluted		0.35			0.43

Management has provided the above reconciliation of net income before unusual items and amortization of debt discount 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. We have included the amortization of debt discount in our analysis in order to facilitate comparison with the non-GAAP earnings guidance provided in the “Outlook” section of this and previous releases which exclude such expense.

CONMED News Release Continued

Page 9 of 13

July 26, 2012

CONMED CORPORATION

RECONCILIATION OF REPORTED NET INCOME TO NON-GAAP NET INCOME

BEFORE UNUSUAL ITEMS AND AMORTIZATION OF DEBT DISCOUNT

Six Months Ended June 30, 2011 and 2012

(in thousands except per share amounts)

(unaudited)

	2011			2012

Reported net income	$	17,675		$	20,264

Facility consolidation costs included in cost of sales		1,740			2,676

Administrative consolidation costs included in other expense		792			1,504

Costs associated with purchase of Nordic region distributor		—			704

Legal costs included in other expense		—			1,555

Total other expense		792			3,763

Amortization of debt discount		2,207			—

Unusual expense before income taxes		4,739			6,439

Provision (benefit) for income taxes on unusual expenses		(1,727	)		(2,318	)

Net income before unusual items and amortization of debt discount	$	20,687		$	24,385


Per share data:

Reported net income
Basic	$	0.62		$	0.72
Diluted		0.61			0.71

Net income before unusual items and amortization of debt discount
Basic	$	0.73		$	0.87
Diluted		0.72			0.85

CONMED News Release Continued

Page 10 of 13

July 26, 2012

CONMED CORPORATION

RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES

(in thousands)

(unaudited)

	Three months ended						Six months ended
	June 30,						June 30,
	2011			2012			2011			2012


Reported income from operations	$	16,698		$	17,058		$	33,961		$	34,080

Facility consolidation
costs included in cost of sales		986			1,202			1,740			2,676

Administrative consolidation
costs included in other expense		98			1,231			792			1,504

Costs associated with purchase
of Nordic region distributor		—			—			—			704

Legal costs included in other expense		—			544			—			1,555

Adjusted income from operations	$	17,782		$	20,035		$	36,493		$	40,519

Operating Margin
Reported (GAAP)		9.1	%		9.0	%		9.3	%		8.9	%

Adjusted (Non-GAAP)		9.7	%		10.6	%		10.0	%		10.6	%

Management has provided the above reconciliations as additional measures that investors can use to compare financial results between reporting periods. Management believes these reconciliations provide a useful presentation of financial measures as discussed in the section “Use of Non-GAAP Financial Measures” above.

CONMED News Release Continued

Page 11 of 13

July 26, 2012

CONMED CORPORATION

RECONCILIATION OF REPORTED NET INCOME TO EBITDA & ADJUSTED EBITDA

(in thousands)

(unaudited)

	Three months ended						Six months ended
	June 30,						June 30,
	2011			2012			2011			2012

Net Income	$	8,680		$	10,296		$	17,675		$	20,264

Provision for income taxes		5,198			5,211			10,567			10,828

Interest expense		1,707			1,551			3,512			2,988

Depreciation		4,567			4,586			8,983			9,274

Amortization of debt discount		1,113			—			2,207			—

Amortization, all other		4,719			6,459			9,240			13,423

EBITDA (using GAAP measures)	$	25,984		$	28,103		$	52,184		$	56,777

Facility consolidation
costs included in cost of sales		986			1,202			1,740			2,676

Administrative consolidation
costs included in other expense		98			1,231			792			1,504

Costs associated with purchase
of Nordic region distributor		—			—			—			704

Legal costs included in other expense		—			544			—			1,555

Adjusted EBITDA	$	27,068		$	31,080		$	54,716		$	63,216

EBITDA Margin
EBITDA (using GAAP measures)		14.2	%		14.8	%		14.2	%		14.8	%
Adjusted EBITDA
(using non-GAAP measures)		14.8	%		16.4	%		14.9	%		16.5	%

CONMED News Release Continued

Page 12 of 13

July 26, 2012

CONMED CORPORATION

Second Quarter Sales Summary

	Three Months Ended June 30,

								Constant
								Currency
	2011		2012		Growth			Growth
	(in millions)
Arthroscopy
Single-use	$	57.0	$	67.5		18.4	%		18.6	%
Capital		13.6		13.5		-0.7	%		0.0	%
		70.6		81.0		14.7	%		15.0	%

Powered Surgical Instruments
Single-use		19.8		20.9		5.6	%		5.9	%
Capital		18.5		16.3		-11.9	%		-11.7	%
		38.3		37.2		-2.9	%		-2.6	%

Electrosurgery
Single-use		18.1		18.4		1.7	%		2.2	%
Capital		8.0		6.0		-25.0	%		-25.0	%
		26.1		24.4		-6.5	%		-6.1	%

Endoscopic Technologies
Single-use		12.5		13.3		6.4	%		7.1	%
Endosurgery
Single-use and reposable		19.1		18.2		-4.7	%		-4.7	%
Patient Care
Single-use		16.6		15.6		-6.0	%		-6.6	%

Total
Single-use and reposable		143.1		153.9		7.5	%		7.8	%
Capital		40.1		35.8		-10.7	%		-10.3	%
	$	183.2	$	189.7		3.5	%		3.8	%

CONMED News Release Continued

Page 13 of 13

July 26, 2012

CONMED CORPORATION

Six-Month Sales Summary

	Six Months Ended June 30,

								Constant
								Currency
	2011		2012		Growth			Growth
	(in millions)
Arthroscopy
Single-use	$	115.1	$	136.7		18.8	%		18.4	%
Capital		30.9		30.5		-1.3	%		-1.0	%
		146.0		167.2		14.5	%		14.3	%

Powered Surgical Instruments
Single-use		40.2		42.4		5.5	%		5.4	%
Capital		36.2		33.4		-7.7	%		-7.9	%
		76.4		75.8		-0.8	%		-0.9	%

Electrosurgery
Single-use		34.8		35.0		0.6	%		0.6	%
Capital		14.9		11.9		-20.1	%		-20.1	%
		49.7		46.9		-5.6	%		-5.6	%

Endoscopic Technologies
Single-use		24.4		26.2		7.4	%		7.3	%
Endosurgery
Single-use and reposable		37.0		36.3		-1.9	%		-1.9	%
Patient Care
Single-use		33.2		31.6		-4.8	%		-5.1	%

Total
Single-use and reposable		284.7		308.2		8.3	%		8.1	%
Capital		82.0		75.8		-7.6	%		-7.5	%
	$	366.7	$	384.0		4.7	%		4.6	%