) posted adjusted earnings per share of 49 cents for the
2014-first quarter, up 8.9% from 45 cents in the same quarter of
2013 as well as the Zacks Consensus Estimate by a couple of
cents. Net earnings improved 5.3% to $13.5 million from $12.9
million in the same quarter of 2013.
Revenues in the quarter dipped 2.7% (2.1% on a constant currency
basis) to $181.9 million. The decrease was attributable to weaker
sales of capital products. International sales in the quarter
were $94.6 million, accounting for 52.0% of total sales.
Revenues from orthopedic surgery business edged up 0.9% (or 1.9%
in constant currency) to $105.9 million. Revenues from general
surgery were down 4.9% (or 4.6% in constant currency) to $63.5
million. Revenues from surgical visualization slipped 17.8% (or
17.1% in constant currency) to $12.5 million.
Adjusted operating earnings in the quarter rose 11.1% to $21.5
million. Adjusted margin in the quarter rose 150 basis points
(bps) to 11.8% from 10.3% in the first quarter of 2013.
Adjusted EBITDA scaled up 4.0% to $33.4 million in the quarter.
Adjusted EBITDA margin rose 120 bps to 18.3% from 17.1% in the
first quarter of 2013.
CONMED exited the year with cash and cash equivalents of $56.3
million as of Mar 31, 2014, up 3.4% from $54.4 million as of Dec
31, 2013. Long-term debt (inclusive of current portion) increased
12.5% to $242.6 million from $215.6 million as of Dec 31, 2013.
Consequently, long-term-debt-to-capitalization ratio rose 270 bps
to 28.9% from 26.2% as of Dec 31, 2013.
In the quarter, CONMED's operating cash flow increased more than
threefold to $17.0 million versus $5.5 million in the prior-year
quarter, mainly due to lower accounts receivable. Capital
expenditures fell 1.6% to $4.1 million in the quarter.
For the 2014-second quarter, CONMED expects revenues in the band
of $190-$195 million. Meanwhile, adjusted earnings per share are
expected between 44 and 48 cents for the quarter.
For full year 2014, CONMED reiterated its revenues guidance in
the range of $770 to $780 million, reflecting a 1-2% rise from
2013 based on continued single use products sales growth and
improved capital products sales. It compared with the Zacks
Consensus Estimate of $776 million.
Adjusted earnings per share continued to be anticipated between
$1.90 and $2.00 compared with the Zacks Consensus Estimate of
$1.94. The expected earnings per share implies a 5-10.5% rise
Currently, CONMED carries a Zacks Rank #3 (Hold). Some
better-ranked stocks in the medical/dental supplies industry
Align Technology Inc.
Cardinal Health, Inc.
The Cooper Companies Inc.
). All these stocks carry a Zacks Rank #2 (Buy).
ALIGN TECH INC (ALGN): Free Stock Analysis
CARDINAL HEALTH (CAH): Free Stock Analysis
CONMED CORP (CNMD): Free Stock Analysis
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