Business Wire | Oct 28, 2020 04:06PM EDT

CONMED Corporation Announces Third Quarter 2020 Financial Results

Oct. 28, 2020

UTICA, N.Y.--(BUSINESS WIRE)--Oct. 28, 2020--CONMED Corporation (NYSE: CNMD) today announced financial results for the third quarter ended September 30, 2020.

Third Quarter 2020 Highlights

* Sales of $237.8 million increased 1.8% year over year as reported and in constant currency. * Domestic revenue increased 4.7% year over year. * International revenue decreased 1.7% as reported and in constant currency. * Diluted net earnings per share (GAAP) was $0.23, which was flat compared to diluted net earnings per share in the third quarter of 2019. * Adjusted diluted net earnings per share(1) was $0.88 versus adjusted diluted net earnings per share of $0.62 in the third quarter of 2019.

"Our third quarter results demonstrate our team's commitment to operational execution in the face of the global COVID-19 environment," commented Curt R. Hartman, CONMED's President, Chief Executive Officer and Chair of the Board. "During the quarter, we generated continued positive momentum within our business despite ongoing geographic variability in procedure volumes as a result of pandemic-related disruptions. I remain confident that our team's outstanding commitment to serving our customers and our continued expense discipline keep us well positioned to achieve profitable above-market growth over the long term."

2020 Outlook

Due to the continued uncertainty created by the COVID-19 pandemic, management is unable to provide financial guidance at this time.

Supplemental Financial Disclosures

(1) A reconciliation of reported diluted net earnings (loss) per share to adjusted diluted net earnings per share, a non-GAAP financial measure, appears below.

Conference Call

The Company's management will host a conference call today at 4:30 p.m. ET to discuss its third quarter 2020 results.

To participate in the conference call, dial 1-844-889-7792 (domestic) or +1-661-378-9936 (international) and refer to the passcode 2498889.

This conference call will also be webcast and can be accessed from the "Investors" section of CONMED's website at www.conmed.com. The webcast replay of the call will be available at the same site approximately one hour after the end of the call.

A recording of the call will also be available from 7:30 p.m. ET on Wednesday, October 28, 2020, until 7:30 p.m. ET on Wednesday, November 4, 2020. To hear this recording, dial 1-855-859-2056 (domestic) or +1-404-537-3406 (international) and enter the passcode 2498889.

Consolidated Condensed Statements of Income (Loss)

(in thousands, except per share amounts, unaudited)

Three Months Ended Nine Months Ended

September 30, September 30,

2020 2019 2020 2019



Net sales $ 237,835 $ 233,590 $ 609,631 $ 690,232

Cost of sales 104,137 103,479 284,845 307,492

Gross profit 133,698 130,111 324,786 382,740

% of sales 56.2% 55.7% 53.3% 55.5%

Selling & administrative expense 94,380 98,187 274,721 298,140

Research & development expense 9,936 10,985 28,756 33,366

Income from operations 29,382 20,939 21,309 51,234

% of sales 12.4% 9.0% 3.5% 7.4%

Interest expense 11,943 11,174 32,938 32,382

Other expense 89 321 266 4,867

Income (loss) before income taxes 17,350 9,444 (11,895) 13,985

Provision for income taxes 10,500 2,474 2,728 299

Net income (loss) $ 6,850 $ 6,970 $ (14,623) $ 13,686



Basic EPS $ 0.24 $ 0.25 $ (0.51) $ 0.48

Diluted EPS 0.23 0.23 (0.51) 0.47



Basic shares 28,583 28,353 28,529 28,280

Diluted shares 29,426 29,792 28,529 29,354

Sales Summary

(in millions, unaudited)

Three Months Ended September 30,

% Change

Domestic

International

2020

2019

As Reported

Impact of Foreign Currency

Constant Currency

As Reported

As Reported

Impact of Foreign Currency

Constant Currency

Orthopedic Surgery

$

102.2

$

110.3

-7.4%

0.3%

-7.1%

-8.5%

-6.7%

0.5%

-6.2%

General Surgery

135.6

123.3

10.0%

-0.2%

9.8%

11.3%

7.3%

-0.9%

6.4%

$

237.8

$

233.6

1.8%

0.0%

1.8%

4.7%

-1.7%

0.0%

-1.7%

Single-use Products

$

190.9

$

184.4

3.6%

0.0%

3.6%

6.3%

0.1%

0.1%

0.2%

Capital Products

46.9

49.2

-4.7%

-0.2%

-4.9%

-2.0%

-7.4%

-0.5%

-7.9%

$

237.8

$

233.6

1.8%

0.0%

1.8%

4.7%

-1.7%

0.0%

-1.7%

Domestic

$

134.2

$

128.2

4.7%

0.0%

4.7%

International

103.6

105.4

-1.7%

0.0%

-1.7%

$

237.8

$

233.6

1.8%

0.0%

1.8%

Nine Months Ended September 30,

% Change

Domestic

International

2020

2019

As Reported

Impact of Foreign Currency

Constant Currency

As Reported

As Reported

Impact of Foreign Currency

Constant Currency

Orthopedic Surgery

$

261.9

$

339.5

-22.8%

1.2%

-21.6%

-25.8%

-21.0%

2.0%

-19.0%

General Surgery

347.7

350.7

-0.9%

0.4%

-0.5%

0.0%

-2.9%

1.2%

-1.7%

$

609.6

$

690.2

-11.7%

0.9%

-10.8%

-9.0%

-14.8%

1.7%

-13.1%

Single-use Products

$

497.1

$

547.0

-9.1%

0.9%

-8.2%

-5.5%

-13.6%

1.9%

-11.7%

Capital Products

112.5

143.2

-21.5%

0.7%

-20.8%

-24.4%

-18.8%

1.4%

-17.4%

$

609.6

$

690.2

-11.7%

0.9%

-10.8%

-9.0%

-14.8%

1.7%

-13.1%

Domestic

$

340.5

$

374.1

-9.0%

0.0%

-9.0%

International

269.1

316.1

-14.8%

1.7%

-13.1%

$

609.6

$

690.2

-11.7%

0.9%

-10.8%

Sales Summary

(in millions, unaudited)

Three Months Ended September 30,

% Change

Domestic International

Impact Impact 2020 2019 As of Constant As As of Constant Reported Foreign Currency Reported Reported Foreign Currency Currency Currency

Orthopedic $ 102.2 $ 110.3 -7.4% 0.3% -7.1% -8.5% -6.7% 0.5% -6.2%Surgery

General Surgery 135.6 123.3 10.0% -0.2% 9.8% 11.3% 7.3% -0.9% 6.4%

$ 237.8 $ 233.6 1.8% 0.0% 1.8% 4.7% -1.7% 0.0% -1.7%



Single-use $ 190.9 $ 184.4 3.6% 0.0% 3.6% 6.3% 0.1% 0.1% 0.2%Products

Capital Products 46.9 49.2 -4.7% -0.2% -4.9% -2.0% -7.4% -0.5% -7.9%

$ 237.8 $ 233.6 1.8% 0.0% 1.8% 4.7% -1.7% 0.0% -1.7%



Domestic $ 134.2 $ 128.2 4.7% 0.0% 4.7%

International 103.6 105.4 -1.7% 0.0% -1.7%

$ 237.8 $ 233.6 1.8% 0.0% 1.8%

Nine Months Ended September 30,

% Change

Domestic International

Impact Impact 2020 2019 As of Constant As As of Constant Reported Foreign Currency Reported Reported Foreign Currency Currency Currency

Orthopedic $ 261.9 $ 339.5 -22.8% 1.2% -21.6% -25.8% -21.0% 2.0% -19.0%Surgery

General Surgery 347.7 350.7 -0.9% 0.4% -0.5% 0.0% -2.9% 1.2% -1.7%

$ 609.6 $ 690.2 -11.7% 0.9% -10.8% -9.0% -14.8% 1.7% -13.1%



Single-use $ 497.1 $ 547.0 -9.1% 0.9% -8.2% -5.5% -13.6% 1.9% -11.7%Products

Capital Products 112.5 143.2 -21.5% 0.7% -20.8% -24.4% -18.8% 1.4% -17.4%

$ 609.6 $ 690.2 -11.7% 0.9% -10.8% -9.0% -14.8% 1.7% -13.1%



Domestic $ 340.5 $ 374.1 -9.0% 0.0% -9.0%

International 269.1 316.1 -14.8% 1.7% -13.1%

$ 609.6 $ 690.2 -11.7% 0.9% -10.8%

Reconciliation of Reported Net Income to Adjusted Net Income

(in thousands, except per share amounts, unaudited)

Three Months Ended September 30, 2020

Gross Profit

Selling & Administrative Expense

Operating Income

Interest Expense

Other Expense

Tax Expense/ (Benefit)

Effective Tax Rate

Net Income

Diluted EPS

As reported

$

133,698

$

94,380

$

29,382

$

11,943

$

89

$

10,500

60.5%

$

6,850

$

0.23

% of sales

56.2%

39.7%

12.4%

Restructuring and related costs (1)

-

(1,009)

1,009

-

-

(87)

1,096

0.04

Acquisition and integration costs (2)

796

-

796

-

-

(366)

1,162

0.04

Manufacturing consolidation costs (3)

606

-

606

-

-

(352)

958

0.03

$

135,100

$

93,371

$

31,793

$

11,943

$

89

$

9,695

$

10,066

$

0.34

Adjusted gross profit %

56.8%

Amortization(4)

$

1,500

(6,992)

8,492

(3,439)

-

(3,980)

15,911

0.54

Adjusted net income

$

86,379

$

40,285

$

8,504

$

89

$

5,715

18.0%

$

25,977

$

0.88

% of sales

36.3%

16.9%

Three Months Ended September 30, 2019

Gross Profit

Selling & Administrative Expense

Operating Income

Interest Expense

Other Expense

Tax Expense

Effective Tax Rate

Net Income

Diluted EPS

As reported

$

130,111

$

98,187

$

20,939

$

11,174

$

321

$

2,474

26.2%

$

6,970

$

0.23

% of sales

55.7%

42.0%

9.0%

Acquisition and integration costs (2)

171

(1,490)

1,661

-

-

290

1,371

0.05

Manufacturing consolidation costs (3)

1,430

-

1,430

-

-

249

1,181

0.04

$

131,712

$

96,697

$

24,030

$

11,174

$

321

$

3,013

$

9,522

$

0.32

Adjusted gross profit %

56.4%

Amortization(4)

$

1,500

(6,841)

8,341

(3,183)

-

2,808

8,716

0.30

Adjusted net income

$

89,856

$

32,371

$

7,991

$

321

$

5,821

24.2%

$

18,238

$

0.62

% of sales

38.5%

13.9%

Diluted shares

29,792

In-the-money portion of convertible notes(5)

(204)

Diluted shares, as adjusted

29,588

Reconciliation of Reported Net Income to Adjusted Net Income

(in thousands, except per share amounts, unaudited)

Three Months Ended September 30, 2020

Gross Selling & Operating Interest Other Tax Effective Net Diluted Profit Administrative Income Expense Expense Expense/ Tax Rate Income EPS Expense (Benefit)

As reported $ 133,698 $ 94,380 $ 29,382 $ 11,943 $ 89 $ 10,500 60.5% $ 6,850 $ 0.23

% of sales 56.2% 39.7% 12.4%

Restructuringand related - (1,009) 1,009 - - (87) 1,096 0.04 costs ^(1)

Acquisitionand 796 - 796 - - (366) 1,162 0.04 integrationcosts ^(2)

Manufacturingconsolidation 606 - 606 - - (352) 958 0.03 costs ^(3)

$ 135,100 $ 93,371 $ 31,793 $ 11,943 $ 89 $ 9,695 $ 10,066 $ 0.34

Adjustedgross profit 56.8% %

Amortization^ $ 1,500 (6,992) 8,492 (3,439) - (3,980) 15,911 0.54 (4)

Adjusted net $ 86,379 $ 40,285 $ 8,504 $ 89 $ 5,715 18.0% $ 25,977 $ 0.88 income

% of sales 36.3% 16.9%

Three Months Ended September 30, 2019

Gross Selling & Operating Interest Other Tax Effective Net Diluted Profit Administrative Income Expense Expense Expense Tax Rate Income EPS Expense

As reported $ 130,111 $ 98,187 $ 20,939 $ 11,174 $ 321 $ 2,474 26.2% $ 6,970 $ 0.23

% of sales 55.7% 42.0% 9.0%

Acquisitionand 171 (1,490) 1,661 - - 290 1,371 0.05 integrationcosts ^(2)

Manufacturingconsolidation 1,430 - 1,430 - - 249 1,181 0.04 costs ^(3)

$ 131,712 $ 96,697 $ 24,030 $ 11,174 $ 321 $ 3,013 $ 9,522 $ 0.32

Adjustedgross profit 56.4% %

Amortization^ $ 1,500 (6,841) 8,341 (3,183) - 2,808 8,716 0.30 (4)

Adjusted net $ 89,856 $ 32,371 $ 7,991 $ 321 $ 5,821 24.2% $ 18,238 $ 0.62 income

% of sales 38.5% 13.9%

Diluted 29,792 shares

In-the-moneyportion of (204) convertiblenotes^(5)

Dilutedshares, as 29,588 adjusted

(1) In 2020, the Company incurred costs related to restructuring of the Orthopedic sales force consisting primarily of termination payments to distributors made in exchange for ongoing assistance to transition to employee-based sales representatives.(2) In 2020, the Company incurred inventory adjustments associated with a prior acquisition. In 2019, the Company incurred inventory adjustments, consulting fees, legal fees, severance and integration related costs associated with the acquisition of Buffalo Filter, LLC.

(3) In 2020 and 2019, the Company incurred costs related to the consolidation of certain manufacturing operations. These costs related to winding down operations at certain locations and moving production lines to other facilities.

(4) Includes amortization of intangible assets, deferred financing fees and debt discount.

(5) In Q3 2019, the Company's average share price exceeded the conversion price of its 2.625% convertible notes due in 2024 (the "Notes"). Non-GAAP adjusted dilutive weighted average shares outstanding exclude dilution that is expected to be offset by the Company's convertible note hedge transactions.

(1) In 2020, the Company incurred costs related to restructuring of theOrthopedic sales force consisting primarily of termination payments todistributors made in exchange for ongoing assistance to transition toemployee-based sales representatives.(2) In 2020, the Company incurred inventory adjustments associated with a prioracquisition. In 2019, the Company incurred inventory adjustments, consultingfees, legal fees, severance and integration related costs associated with theacquisition of Buffalo Filter, LLC.

(3) In 2020 and 2019, the Company incurred costs related to the consolidationof certain manufacturing operations. These costs related to winding downoperations at certain locations and moving production lines to otherfacilities.

(4) Includes amortization of intangible assets, deferred financing fees anddebt discount.

(5) In Q3 2019, the Company's average share price exceeded the conversion priceof its 2.625% convertible notes due in 2024 (the "Notes"). Non-GAAP adjusteddilutive weighted average shares outstanding exclude dilution that is expectedto be offset by the Company's convertible note hedge transactions.

Reconciliation of Reported Net Income (Loss) to Adjusted Net Income

(in thousands, except per share amounts, unaudited)

Nine Months Ended September 30, 2020

Gross Profit

Selling & Administrative Expense

Operating Income

Interest Expense

Other Expense

Tax Expense

Effective Tax Rate

Net Income (Loss)

Diluted EPS

As reported

$

324,786

$

274,721

$

21,309

$

32,938

$

266

$

2,728

-22.9%

$

(14,623)

$

(0.51)

% of sales

53.3%

45.1%

3.5%

Plant underutilization costs (1)

6,586

-

6,586

-

-

739

5,847

0.20

Product rationalization costs (2)

2,169

(2,095)

4,264

-

-

460

3,804

0.13

Restructuring and related costs (3)

1,087

(3,133)

4,220

-

-

259

3,961

0.14

Acquisition and integration costs (4)

2,253

(1,192)

3,445

-

-

356

3,089

0.11

Manufacturing consolidation costs (5)

3,993

-

3,993

-

-

485

3,508

0.12

$

340,874

$

268,301

$

43,817

$

32,938

$

266

$

5,027

$

5,586

$

0.19

Adjusted gross profit %

55.9%

Amortization(6)

$

4,500

(20,947)

25,447

(9,936)

-

1,795

33,588

1.14

Adjusted net income

$

247,354

$

69,264

$

23,002

$

266

$

6,822

14.8%

$

39,174

$

1.33

% of sales

40.6%

11.4%

Diluted shares, as reported

28,529

Effect of dilutive shares assuming net earnings(7)

859

Diluted shares, as adjusted

29,388

Nine Months Ended September 30, 2019

Gross Profit

Selling & Administrative Expense

Operating Income

Interest Expense

Other Expense

Tax Expense

Effective Tax Rate

Net Income

Diluted EPS

As reported

$

382,740

$

298,140

$

51,234

$

32,382

$

4,867

$

299

2.1%

$

13,686

$

0.47

% of sales

55.5%

43.2%

7.4%

Acquisition and integration costs (4)

1,335

(11,196)

12,531

-

-

3,473

9,058

0.31

Manufacturing consolidation costs (5)

1,430

-

1,430

-

-

249

1,181

0.04

Debt refinancing costs (8)

-

-

-

-

(3,904)

1,149

2,755

0.09

$

385,505

$

286,944

$

65,195

$

32,382

$

963

$

5,170

$

26,680

$

0.91

Adjusted gross profit %

55.9%

Amortization(6)

$

4,500

(19,436)

23,936

(8,573)

-

8,056

24,453

0.83

Adjusted net income

$

267,508

$

89,131

$

23,809

$

963

$

13,226

20.6%

$

51,133

$

1.74

% of sales

38.8%

12.9%

Reconciliation of Reported Net Income (Loss) to Adjusted Net Income

(in thousands, except per share amounts, unaudited)

Nine Months Ended September 30, 2020

Gross Selling & Operating Interest Other Tax Effective Net Diluted Profit Administrative Income Expense Expense Expense Tax Rate Income EPS Expense (Loss)

As reported $ 324,786 $ 274,721 $ 21,309 $ 32,938 $ 266 $ 2,728 -22.9% $ (14,623) $ (0.51)

% of sales 53.3% 45.1% 3.5%

Plant underutilization 6,586 - 6,586 - - 739 5,847 0.20 costs ^(1)

Product rationalization 2,169 (2,095) 4,264 - - 460 3,804 0.13 costs ^(2)

Restructuring and related 1,087 (3,133) 4,220 - - 259 3,961 0.14 costs ^(3)

Acquisition and integration 2,253 (1,192) 3,445 - - 356 3,089 0.11 costs ^(4)

Manufacturing consolidation 3,993 - 3,993 - - 485 3,508 0.12 costs ^(5)

$ 340,874 $ 268,301 $ 43,817 $ 32,938 $ 266 $ 5,027 $ 5,586 $ 0.19

Adjusted gross 55.9% profit %

Amortization^(6) $ 4,500 (20,947) 25,447 (9,936) - 1,795 33,588 1.14

Adjusted net $ 247,354 $ 69,264 $ 23,002 $ 266 $ 6,822 14.8% $ 39,174 $ 1.33 income

% of sales 40.6% 11.4%

Diluted shares, 28,529 as reported

Effect of dilutive shares 859 assuming net earnings^(7)

Diluted shares, 29,388 as adjusted

Nine Months Ended September 30, 2019

Gross Selling & Operating Interest Other Tax Effective Net Diluted Profit Administrative Income Expense Expense Expense Tax Rate Income EPS Expense

As reported $ 382,740 $ 298,140 $ 51,234 $ 32,382 $ 4,867 $ 299 2.1% $ 13,686 $ 0.47

% of sales 55.5% 43.2% 7.4%

Acquisition and integration 1,335 (11,196) 12,531 - - 3,473 9,058 0.31 costs ^(4)

Manufacturing consolidation 1,430 - 1,430 - - 249 1,181 0.04 costs ^(5)

Debt refinancing - - - - (3,904) 1,149 2,755 0.09 costs ^(8)

$ 385,505 $ 286,944 $ 65,195 $ 32,382 $ 963 $ 5,170 $ 26,680 $ 0.91

Adjusted gross 55.9% profit %

Amortization^(6) $ 4,500 (19,436) 23,936 (8,573) - 8,056 24,453 0.83

Adjusted net $ 267,508 $ 89,131 $ 23,809 $ 963 $ 13,226 20.6% $ 51,133 $ 1.74 income

% of sales 38.8% 12.9%

(1) In 2020, the Company incurred a charge related to plant underutilization due to abnormally low production as a result of decreased sales caused by the COVID-19 pandemic.

(2) In 2020, the Company performed an analysis of product lines and determined certain catalog numbers, principally related to capital equipment, would be discontinued and consolidated into existing product offerings resulting in a charge to cost of sales. The Company also wrote-off related field inventory used for customer demonstration and evaluation of the discontinued products to selling and administrative expense.

(3) In 2020, the Company incurred restructuring costs related to a voluntary separation arrangement with employees as a result of the COVID-19 pandemic. In 2020, the Company also incurred costs related to restructuring of the Orthopedic sales force consisting primarily of termination payments to distributors made in exchange for ongoing assistance to transition to employee-based sales representatives.

(4) In 2020, the Company incurred inventory adjustments associated with a prior acquisition and severance and integration costs mainly related to the Buffalo Filter, LLC acquisition. In 2019, the Company incurred inventory adjustments, investment banking fees, consulting fees, legal fees, severance and integration related costs associated with the acquisition of Buffalo Filter, LLC.

(5) In 2020 and 2019, the Company incurred costs related to the consolidation of certain manufacturing operations. These costs related to winding down operations at certain locations and moving production lines to other facilities.

(6) Includes amortization of intangible assets, deferred financing fees and debt discount.

(7) Diluted share count used in Diluted EPS, as adjusted, for the nine months ended September 30, 2020 adjusts for shares assuming net earnings.

(8) In 2019, in conjunction with the acquisition of Buffalo Filter, LLC, the Company refinanced its existing credit facility and incurred one-time fees associated with an agreement between the Company and JP Morgan Chase Bank, N.A., as well as costs associated with the early extinguishment of debt.

(1) In 2020, the Company incurred a charge related to plant underutilizationdue to abnormally low production as a result of decreased sales caused by theCOVID-19 pandemic.

(2) In 2020, the Company performed an analysis of product lines and determinedcertain catalog numbers, principally related to capital equipment, would bediscontinued and consolidated into existing product offerings resulting in acharge to cost of sales. The Company also wrote-off related field inventoryused for customer demonstration and evaluation of the discontinued products toselling and administrative expense.

(3) In 2020, the Company incurred restructuring costs related to a voluntaryseparation arrangement with employees as a result of the COVID-19 pandemic. In2020, the Company also incurred costs related to restructuring of theOrthopedic sales force consisting primarily of termination payments todistributors made in exchange for ongoing assistance to transition toemployee-based sales representatives.

(4) In 2020, the Company incurred inventory adjustments associated with a prioracquisition and severance and integration costs mainly related to the BuffaloFilter, LLC acquisition. In 2019, the Company incurred inventory adjustments,investment banking fees, consulting fees, legal fees, severance and integrationrelated costs associated with the acquisition of Buffalo Filter, LLC.

(5) In 2020 and 2019, the Company incurred costs related to the consolidationof certain manufacturing operations. These costs related to winding downoperations at certain locations and moving production lines to otherfacilities.

(6) Includes amortization of intangible assets, deferred financing fees anddebt discount.

(7) Diluted share count used in Diluted EPS, as adjusted, for the nine monthsended September 30, 2020 adjusts for shares assuming net earnings.

(8) In 2019, in conjunction with the acquisition of Buffalo Filter, LLC, theCompany refinanced its existing credit facility and incurred one-time feesassociated with an agreement between the Company and JP Morgan Chase Bank,N.A., as well as costs associated with the early extinguishment of debt.

Reconciliation of Reported Net Income (Loss) to EBITDA & Adjusted EBITDA

(in thousands, unaudited)

Three Months Ended

Nine Months Ended

September 30,

September 30,

2020

2019

2020

2019

Net income (loss)

$

6,850

$

6,970

$

(14,623)

$

13,686

Provision from income taxes

10,500

2,474

2,728

299

Interest expense

11,943

11,174

32,938

32,382

Depreciation

4,383

5,258

13,617

14,225

Amortization

13,580

13,377

40,973

38,837

EBITDA

$

47,256

$

39,253

$

75,633

$

99,429

Stock based compensation

3,532

3,008

10,119

8,819

Plant underutilization costs

-

-

6,586

-

Product rationalization costs

-

-

4,264

-

Restructuring and related costs

1,009

-

4,220

-

Manufacturing consolidation costs

606

1,430

3,993

1,430

Acquisition and integration costs

796

1,661

3,445

12,531

Debt refinancing costs

-

-

-

3,904

Adjusted EBITDA

$

53,199

$

45,352

$

108,260

$

126,113

EBITDA Margin

EBITDA

19.9%

16.8%

12.4%

14.4%

Adjusted EBITDA

22.4%

19.4%

17.8%

18.3%

About CONMED Corporation

CONMED is a medical technology company that provides surgical devices and equipment for minimally invasive procedures. The Company's products are used by surgeons and physicians in a variety of specialties, including orthopedics, general surgery, gynecology, neurosurgery, thoracic surgery, and gastroenterology. For more information, visit www.conmed.com.

Forward-Looking Statements

This press release and today's conference call 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 risks posed to the Company's business, financial condition, and results of operations by the COVID-19 global pandemic and the various government responses to the pandemic, including deferral of surgeries, reductions in hospital and ambulatory surgery center operating volumes, disruption to potential supply chain reliability, as well as the risk factors discussed in the Company's Annual Report on Form 10-K for the full year ended December 31, 2019, and listed under the heading Forward-Looking Statements in the Company's most recently filed Form 10-Q. 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.

Supplemental Information - Reconciliation of GAAP to Non-GAAP Financial Measures

The Company supplements the reporting of its financial information determined under accounting principles generally accepted in the United States (GAAP) with certain non-GAAP financial measures, including percentage sales growth in constant currency; adjusted gross profit; cost of sales excluding specified items; adjusted selling and administrative expenses; adjusted operating income; adjusted interest expense; adjusted other expense; adjusted income tax expense (benefit); adjusted effective income tax rate; adjusted net income, adjusted diluted shares and adjusted diluted net earnings per share (EPS). The Company believes that these non-GAAP measures provide meaningful information to assist investors and shareholders in understanding its financial results and assessing its prospects for future performance. Management believes percentage sales growth in constant currency and the other adjusted measures described above are important indicators of its operations because they exclude items that may not be indicative of, or are unrelated to, its core operating results and provide a baseline for analyzing trends in the Company's underlying business. Further, the presentation of EBITDA is a non-GAAP measurement that management considers useful for measuring aspects of the Company's cash flow. Management uses these non-GAAP financial measures for reviewing the operating results and analyzing potential future business trends in connection with its budget process and bases certain management incentive compensation on these non-GAAP financial measures.

Net sales on a constant currency basis is a non-GAAP measure. The Company analyzes net sales on a constant currency basis to better measure the comparability of results between periods. To measure percentage sales growth in constant currency, the Company removes the impact of changes in foreign currency exchange rates that affect the comparability and trend of net sales. 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.

Because non-GAAP financial measures are not standardized, it may not be possible to compare these financial measures with other companies' non-GAAP financial measures having the same or similar names. These adjusted financial measures should not be considered in isolation or as a substitute for reported sales growth, gross profit, cost of sales, selling and administrative expenses, operating income, interest expense, other expense, income tax expense, effective income tax rate, net income (loss), diluted shares and diluted net earnings (loss) per share, the most directly comparable GAAP financial measures. These non-GAAP financial measures are an additional way of viewing aspects of the Company's operations that, when viewed with GAAP results and the reconciliations to corresponding GAAP financial measures above, provide a more complete understanding of the business. The Company strongly encourages investors and shareholders to review its financial statements and publicly filed reports in their entirety and not to rely on any single financial measure.

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CONTACT: CONMED Corporation Todd Garner Chief Financial Officer 315-624-3317 ToddGarner@conmed.com