UTICA, N.Y.--(BUSINESS WIRE)--CONMED Corporation (Nasdaq:CNMD) today announced financial results for the second quarter ended June 30, 2017.
Second Quarter 2017 Highlights
- Sales of $197.2 million increased 1.9% as reported compared to the second quarter of 2016. On a constant currency basis, sales increased 3.0%.
- International revenue grew 2.5% as reported and 4.7% in constant currency, driven by continued growth in General Surgery and Orthopedics.
- Domestic General Surgery sales grew 3.3%, contributing to 1.3% overall domestic revenue growth.
- Diluted net earnings per share (GAAP) were $0.22, compared to diluted net earnings per share (GAAP) of $0.10 in the second quarter of 2016.
- Adjusted diluted net earnings per share(1) were $0.41 versus $0.47 in the prior-year period.
- The Company increases its constant currency sales growth guidance and maintains its adjusted diluted net earnings per share guidance.
“Our continued top-line growth during the quarter was driven by a sixth straight quarter of growth from the General Surgery business and further strength in our international markets. Additionally, we remain encouraged by our domestic Orthopedics business, which posted a second consecutive quarter of sequential improvement, while worldwide Orthopedics sales returned to positive constant currency growth,” commented Curt R. Hartman, CONMED’s President and Chief Executive Officer. “We are pleased with the progress we have made to date and expect to build on this momentum in the second half of the year.”
Sales Analysis
For the quarter ended June 30, 2017, domestic sales, which represented 50.7% of total revenue, increased 1.3%, as year-over-year growth of 3.3% in General Surgery was partially offset by a decline of 1.4% in Orthopedics. International sales, which represented 49.3% of total revenue, increased 2.5% compared to the second quarter of 2016 on a reported basis. Foreign currency exchange rates, including the effects of the FX hedging program, had a negative impact of $2.1 million on second quarter sales. In constant currency, international sales increased 4.7% versus the prior-year period.
Earnings Analysis
For the quarter ended June 30, 2017, reported net income totaled $6.1 million, compared to reported net income of $2.9 million a year ago. Reported diluted net earnings per share were $0.22 in the quarter, compared to reported diluted net earnings per share of $0.10 in the prior-year period. Reported net income for 2017 and 2016 includes business acquisition costs, restructuring costs, and legal costs. The increase in reported net income resulted primarily from $2.2 million of additional business acquisition costs and $3.5 million of additional restructuring costs in the prior-year period. The effect of each of these items on reported net income and reported diluted net earnings per share appears in the reconciliation of GAAP to non-GAAP measures below.
The Company excludes the after-tax costs of special items including acquisitions, restructurings, legal matters, gains on the sale of assets, debt refinancings, as well as amortization of intangible assets, net of tax, from its adjusted diluted net earnings per share. Excluding the impact of these items, adjusted net earnings(2) of $11.4 million decreased 13.2% year over year, and adjusted diluted net earnings per share(1) of $0.41 decreased 12.8% year over year. The decrease in adjusted net earnings resulted primarily from the unfavorable impact of foreign exchange rates, partially offset by higher sales.
