CONMED Corporation Reports Strong Financial Performance for Q3 and Nine Months Ended September 30, 2024

CONMED Corporation reported strong financial performance for the three and nine months ended September 30, 2024, with notable increases in net sales, profitability, and cash flow compared to the same periods in 2023.

For the third quarter of 2024, net sales reached $316.7 million, a 4.0% increase from $304.6 million in the prior year. For the nine-month period, net sales totaled $961.1 million, up 4.7% from $917.7 million. The growth was driven by a 6.9% increase in sales of single-use products, which accounted for approximately 85% of total revenues. Orthopedic surgery sales rose by 4.7% in the third quarter, while general surgery sales increased by 3.5%.

Gross profit for the third quarter was $179.0 million, yielding a gross profit margin of 56.5%, up from 55.2% in the same period last year. For the nine months, gross profit was $534.7 million, with a margin of 55.6%, compared to 53.8% in 2023. The improved margins were attributed to a favorable product mix and reduced costs related to the amortization of inventory from the In2Bones acquisition.

Operating income for the third quarter surged to $65.7 million, significantly higher than $30.3 million in 2023, while for the nine months, it reached $147.8 million compared to $70.4 million in the previous year. Net income for the third quarter was $49.0 million, or $1.59 per share, compared to $15.8 million, or $0.52 per share, in the same quarter of 2023. For the nine months, net income was $98.7 million, or $3.20 per share, up from $31.4 million, or $1.02 per share.

CONMED's selling and administrative expenses decreased significantly, totaling $99.7 million for the third quarter, down from $125.3 million in 2023, and $345.6 million for the nine months, compared to $385.1 million. This reduction was largely due to income from fair value adjustments to contingent consideration related to acquisitions.

Cash and cash equivalents increased to $38.5 million as of September 30, 2024, up from $24.3 million at the end of 2023. The company generated $123.6 million in net cash from operating activities for the nine months, compared to $69.0 million in the same period last year.

CONMED continues to focus on strategic growth through acquisitions, with contingent consideration for In2Bones and Biorez impacting financial results. The company has also maintained a robust balance sheet, with total assets of $2.3 billion and total shareholders' equity of $932.9 million as of September 30, 2024.