8-K
CONMED Corp false 0000816956 0000816956 2025-01-13 2025-01-13

 

 

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): January 13, 2025

 

 

CONMED CORPORATION

(Exact name of registrant as specified in its charter)

 

 

 

Delaware   001-39218   16-0977505
(State or other jurisdiction
of incorporation or organization)
 

(Commission

File Number)

 

(I.R.S. Employer

Identification No.)

 

11311 Concept Blvd

Largo, FL

  33773
(Address of principal executive offices)   (Zip code)

(727) 392-6464

(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))

Securities registered pursuant to Rule 12(b) of the Act

 

Title of each class

 

Trading
Symbol

 

Name of each exchange
on which registered

Common Stock, $0.01 par value   CNMD   NYSE

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

 

 

 


Item 7.01

Regulation FD Disclosure.

CONMED Corporation (the “Company”) is furnishing as Exhibit 99.1 to this Current Report on Form 8-K an investor presentation that the Company will be presenting at the J.P. Morgan Healthcare Conference on January 13, 2025. The investor presentation is available on the CONMED Corporation website www.conmed.com in the Investors section under News & Events—Presentations.

The information contained in this Current Report on Form 8-K (including Exhibit 99.1) is being furnished and shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that section or Sections 11 and 12(a)(2) of the Securities Act of 1933, as amended (the “Securities Act”), and shall not be deemed incorporated by reference into any filing under the Securities Act or the Exchange Act, except as shall be expressly provided by specific reference in such filing.

 

Item 9.01

Financial Statements and Exhibits.

(d) Exhibits

The following exhibit is included as part of this Current Report on Form 8-K:

 

Number    Description of Exhibits
99.1    CONMED Corporation Investor Presentation dated January 13, 2025.
104    The cover page from this Current Report on Form 8-K, formatted in Inline XBRL.

 


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 hereunto duly authorized.

 

Date:   January 13, 2025   CONMED CORPORATION
      (Registrant)
    By:  

/s/ Todd W. Garner

    Name:   Todd W. Garner
    Title:   Executive Vice President-Chief Financial Officer
EX-99.1

Exhibit 99.1

 

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J.P. Morgan 43rd Annual Healthcare Conference


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Forward-Looking Information This presentation may contain forward-looking statements based on certain assumptions and contingencies that 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. For example, in addition to general industry and economic conditions, factors that could cause actual results to differ materially from those in the forward-looking statements may include, but are not limited to the risk factors discussed in the Company’s Annual Report on Form 10-K for the full year ended December 31, 2023, listed under the heading Forward-Looking Statements in the Company’s most recently filed Form 10-Q and other risks and uncertainties, which may be detailed from time to time in reports filed by CONMED with the SEC. Any and all 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 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. Management has disclosed adjusted financial measurements in this presentation that present financial information that is not in accordance with generally accepted accounting principles in the United States (GAAP). The Company analyzes net sales on a constant currency basis to better measure the comparability of results between periods. To measure earnings performance on a consistent and comparable basis, the Company excludes certain items that affect the comparability of operating results and the trend of earnings. These adjustments are irregular in timing, may not be indicative of past and future performance and are therefore excluded to allow investors to better understand underlying operating trends. These measurements are not a substitute for GAAP measurements. 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. We are unable to present a quantitative reconciliation of our expected diluted net earnings per share to expected adjusted diluted net earnings per share as we are unable to predict with reasonable certainty and without unreasonable effort the impact and timing of acquisition, integration and other charges. The financial impact of these items is uncertain and is dependent on various factors, including timing, and could be material to our consolidated statements of income. J.P. Morgan 43rd Annual Healthcare Conference 2


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CONMED Vision Empower healthcare providers worldwide to deliver exceptional outcomes for patients. Focus behind the Vision People, Products, Profitability J.P. Morgan 43rd Annual Healthcare Conference 3 


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CONMED Senior Leadership Team Ed Clifford VP, Global Manufacturing CON years CONMED: 1.5 years – Industry: 10 years CON ears Todd Garner Pr EVP, Finance & Chief Financial Officer CON ears CONMED: 7 years – Industry: 23 years EVP, Inf CIO VP, Qual fairs CON s CON ears CON ears EVP, etary CON ears C ears EVP, Str t VP, Finan GM CON s CON ears CON s Pat J. Beyer President and Chief Executive Officer Todd W. Garner Executive Vice President and Chief Financial Officer January 13th, 2025 


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Objectives for Our Shareholders • Aggregate growth and profitability over the long term to significantly increase the valuation of the company • Evolve product mix toward higher-growth, higher-margin offerings • Increase our market share in large and attractive markets • Deliver above-market revenue and profitability growth over the long term J.P. Morgan 43rd Annual Healthcare Conference 5 


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Orthopedics: Large, Attractive Markets Category Description Dollar Value of 1 Market Market Size and Competitors Share Point $5.1 to $5.3 Billion Comprehensive portfolio of devices Sports for repair and healing of soft tissue â–ª Arthrex â–ª Zimmer Biomet Medicine & injuries, including implants, biologics, â–ª DePuy Mitek â–ª Allosource ~$52M Sept 2024 YTD Biologics allograft tissue, enabling devices and (J&J) â–ª LifeNet related instruments â–ª Smith & Nephew â–ª RTI â–ª Stryker $3.3 to $3.7 Billion â–ª Stryker â–ª Arthrex US Surgical drills/saws, high-definition â–ª DePuy Synthes â–ª Olympus Capital (J&J) â–ª Richard Wolf 39% surgical visualization systems, and ~$35M Equipment related single-use accessories â–ª Zimmer Biomet â–ª Karl Storz International â–ª Smith & Nephew â–ª Medtronic (Midas 61% Rex/ Xomed) $4.8 to $5.0 Billion Comprehensive portfolio includes â–ª Stryker â–ª Paragon 28 Foot & Ankle implants, fracture systems, biologics, â–ª DePuy Synthes â–ª Treace ~$49M and related hardware (J&J) 77% â–ª Arthrex Recurring, ~$136M single-use revenue Total 60% to 70% in Surgery Centers in the U.S. ~11% growth for Orthopedics total company J.P. Morgan 43rd Annual Healthcare Conference 6


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General Surgery: Large, Attractive Markets Category    Description Dollar Value of 1 Market Market Size and Competitors Share Point A platform of devices and accessories $1.5 to $1.7 Billion to create and enter the surgical â–ª Ethicon (J&J) â–ª Medtronic Access ~$16M working space in minimally invasive â–ª Applied Medical â–ª Olympus Sept 2024 YTD procedures â–ª Stryker â–ª Karl Storz RF energy to affect tissue by cutting, $3.1 to $3.3 Billion sealing, or causing hemostasis in open â–ª Medtronic â–ª Stryker Energy or minimally invasive procedures. â–ª Ethicon (J&J) â–ª Cooper Surgical ~$32M Smoke evacuation and filtration to â–ª Olympus â–ª ERBE support the surgical environment International $1.6 to $1.8 Billion Instruments and accessories for â–ª Karl Storz 30% Instruments minimally invasive laparoscopic, open, ~$17M â–ª Aesculap and robotic approaches US â–ª Stryker $3.1 to $3.3 Billion 70% Endoscopic Therapeutic and diagnostic â–ª Boston Scientific â–ª Olympus endoscopic products used by ~$32M Technologies â–ª Cook Medical â–ª Merit Endotek Gastroenterologists â–ª Cantel â–ª STERIS Single-use devices for monitoring $0.8 to $1.0 Billion 91% Critical Care cardiac activity and other patient care â–ª 3M Company ~$9M Recurring, devices â–ª Cardinal single-use revenue ~$106M Total General 90% to 95% in Hospitals ~8% growth for Surgery total company J.P. Morgan 43rd Annual Healthcare Conference 7 


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Mix & Gross Margins Mid-Term Expected Estimated Category    Revenue Growth 2024 GM % Sports Medicine Mid Single Digits to Sept 2024 YTD 65% (including BioBrace) High Single Digits Ortho Capital & Low Single Digits 40% Related Disp. Other Foot & Ankle Double Digits 80% G.I. Sports Total Orthopedics 4% to 8% 57.5% Medicine AirSeal & Direct Surgical Double Digits 70% Smoke Evac. Instruments Surgical Instruments Low Single Digits 45% Ortho Capital & Mid Single Digits to Related Disp. G.I. 45% High Single Digits Airseal & Direct Other Smoke Evac. Decline to Flat 30% (incl. OEM Smoke Evac.) F&A Total General Surgery 5% to 11% 55.2% Total CONMED 4% to 9% 56.2% Mid-Term Expected Revenue Growth Mix % 2024 GM % Double Digits ~33% 71.2% Sales mix of higher margin products can drive 50 Single Digits ~58% 51.6% to 80 BP of annual gross margin improvement Flat to Declining ~9% 30.0% J.P. Morgan 43rd Annual Healthcare Conference 8 


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Historical Performance Revenue (in millions) Adjusted EPS $1,300 $4.00 $1,245 to to $1,305 $3.45 $4.05 $1,045* $3.21 $1,011 $955 $860 $862 $2.64 $2.65* $796 $764 $719 $2.18 $2.18 $1.98 $1.89 $1.84 * * 2024 Guidance Range Revenue 2024 Guidance Range Adjusted EPS *2022 results were negatively impacted by Q4 2022 warehouse issue J.P. Morgan 43rd Annual Healthcare Conference 9 


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Key Focus Areas • Driving superior outcomes for • Protecting caregivers worldwide using patients through clinical insufflation Buffalo Filter’s proprietary technology with AirSeal in Robotic and Laparoscopic surgery • Improving our ability to serve • Delivering superior clinical outcomes in customers by partnering with a top- over 40+ sports medicine procedures by tier consulting firm to strengthen utilizing BioBrace’s strength and healing operations properties • Continuing to bring down leverage • Foot and Ankle realizing double digit sales growth J.P. Morgan 43rd Annual Healthcare Conference 10


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Environmental, Social and Governance Together We Are Making A Difference for a Better Tomorrow Environmental Social Governance CONMED manufacturing Partners with United Way and In addition to oversight by the full operations have recycling TEAMFund to serve communities Board, the ESG Steering programs including eScrap, metal, where we operate and provide Committee provides strategic cardboard, plastic, and paper. medical innovation to direction and prioritization of underrepresented communities, ESG initiatives. respectively. Use of ISO 14001 and 45001 98% of employees participated in CONMED’s executive leadership as a framework to harmonize the Gallup Q12 Employee is responsible for setting the an Environmental Management Engagement Survey. ethical code and overseeing System across CONMED. compliance. Development of capabilities to Women make up 53% of our 37.5% gender diversity on Board measure and understand greenhouse global workforce. of Directors. gas emissions associated with our operations, and to identify areas of high impact and opportunities for reduction. J.P. Morgan 43rd Annual Healthcare Conference Most recent report available on CONMED.com 11


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Closing Thoughts • 2024 was a challenging year • Intense focus on solving unmet needs for healthcare customers drives increased market share • Large and attractive markets provide CONMED with ample opportunities for above-average revenue and profitability growth • Portfolio continues to evolve toward higher-growth, higher-margin offerings • At CONMED, we are focused on doing things the right way and being good corporate citizens J.P. Morgan 43rd Annual Healthcare Conference 12