cnmd-20240930

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934


For the quarterly period ended			Commission File Number
September 30, 2024			001-39218

CONMED CORPORATION

(Exact name of the registrant as specified in its charter)


Delaware			16-0977505
(State or other jurisdiction of incorporation or organization)			(I.R.S. Employer Identification No.)

11311 Concept Blvd	Largo,	Florida	33773
(Address of principal executive offices)			(Zip Code)

(727) 392-6464

(Registrant's telephone number, including area code)

Securities registered pursuant to Section 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 (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports) and (2) has been subject to such filing requirements for the past 90 days.

Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).

Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company or an emerging growth company. See the definitions of "large accelerated filer", "accelerated filer", "smaller reporting company" and "emerging growth company" in Rule 12b-2 of the Exchange Act (Check one).

Large accelerated filer ☒ Accelerated filer ☐ Non-accelerated filer ☐

Smaller reporting company ☐ 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. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).

Yes ☐ No ☒

The number of shares outstanding of registrant's common stock, as of October 28, 2024 is 30,890,853 shares.

CONMED CORPORATION

QUARTERLY REPORT ON FORM 10-Q

FOR THE QUARTER ENDED SEPTEMBER 30, 2024


PART I FINANCIAL INFORMATION
Item Number		Page

Item 1.	Financial Statements (unaudited)

	– Consolidated Condensed Statements of Comprehensive Income for the three and nine months ended September 30, 2024 and 2023	1

	– Consolidated Condensed Balance Sheets as of September 30, 2024 and December 31, 2023	2

	– Consolidated Condensed Statements of Shareholders' Equity for the nine months ended September 30, 2024 and 2023	3

	– Consolidated Condensed Statements of Cash Flows for the nine months ended September 30, 2024 and 2023	5

	– Notes to Consolidated Condensed Financial Statements	6


Item 2.	Management's Discussion and Analysis of Financial Condition and Results of Operations	21

Item 3.	Quantitative and Qualitative Disclosures About Market Risk	28

Item 4.	Controls and Procedures	28

PART II OTHER INFORMATION

Item 1.	Legal Proceedings	28

Item 5.	Other Information	28

Item 6.	Exhibits	29


Signatures		30

Table of Contents

PART I FINANCIAL INFORMATION

Item 1.

CONMED CORPORATION

CONSOLIDATED CONDENSED STATEMENTS OF COMPREHENSIVE INCOME

(Unaudited, in thousands except per share amounts)


	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2024		2023		2024		2023
Net sales	$	316,701	$	304,578	$	961,071	$	917,699

Cost of sales	137,706		136,519		426,383		423,629

Gross profit	178,995		168,059		534,688		494,070

Selling and administrative expense	99,730		125,295		345,611		385,080

Research and development expense	13,558		12,464		41,250		38,574

Operating expenses	113,288		137,759		386,861		423,654

Income from operations	65,707		30,300		147,827		70,416

Interest expense	9,252		10,019		28,440		30,271



Income before income taxes	56,455		20,281		119,387		40,145

Provision for income taxes	7,471		4,444		20,719		8,757

Net income	$	48,984	$	15,837	$	98,668	$	31,388

Comprehensive income	$	48,701	$	14,825	$	94,121	$	35,287


Per share data:

Net income
Basic	$	1.59	$	0.52	$	3.20	$	1.02
Diluted	1.57		0.50		3.17		0.99

Weighted average common shares
Basic	30,856		30,741		30,815		30,638
Diluted	31,112		31,689		31,148		31,563

See notes to consolidated condensed financial statements.

Table of Contents

CONMED CORPORATION

CONSOLIDATED CONDENSED BALANCE SHEETS

(Unaudited, in thousands except share and per share amounts)


	September 30, 2024		December 31, 2023
ASSETS
Current assets:
Cash and cash equivalents	$	38,467	$	24,296
Accounts receivable, net	231,229		242,279
Inventories	342,550		318,324
Prepaid expenses and other current assets	28,753		30,750
Total current assets	640,999		615,649
Property, plant and equipment, net	117,415		120,722
Goodwill	806,871		806,844
Other intangible assets, net	625,569		649,484
Other assets	124,890		107,322
Total assets	$	2,315,744	$	2,300,021




LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Current portion of long-term debt	$	717	$	708
Accounts payable	104,571		88,224
Accrued compensation and benefits	61,417		70,069
Other current liabilities	115,606		151,728
Total current liabilities	282,311		310,729

Long-term debt	940,094		973,140
Deferred income taxes	65,820		60,902
Other long-term liabilities	94,623		121,028
Total liabilities	1,382,848		1,465,799

Commitments and contingencies

Shareholders' equity:
Preferred stock, par value $0.01 per share;
authorized 500,000 shares; none outstanding	—		—
Common stock, par value $0.01 per share; 100,000,000 shares authorized; 31,299,194 shares issued in 2024 and 2023, respectively	313		313
Paid-in capital

SEC Form 10-Q filed by CONMED Corporation