Business Wire | Oct 27, 2021 04:05PM EDT

CONMED Corporation Announces Third Quarter Financial Results

Oct. 27, 2021

LARGO, Fla.--(BUSINESS WIRE)--Oct. 27, 2021--CONMED Corporation (NYSE: CNMD) today announced financial results for the third quarter ended September 30, 2021.

Third Quarter 2021 Highlights

* Sales of $248.8 million increased 4.6% year over year as reported and 4.3% in constant currency. * Domestic revenue increased 1.6% year over year. * International revenue increased 8.5% year over year as reported and 7.7% in constant currency. * Diluted net earnings per share (GAAP) were $0.47, compared to diluted net earnings per share of $0.23 during the third quarter of 2020. * Adjusted diluted net earnings per share(1) were $0.80, compared to adjusted diluted net earnings per share of $0.88 during the third quarter of 2020.

"We faced a more challenging macro environment during the third quarter than anticipated, but our organizational resilience enabled us to grow revenue over the third quarters of both 2020 and 2019," commented Curt R. Hartman, CONMED's Chair of the Board, President, and Chief Executive Officer. "Our team remains focused on serving our customers and helping them navigate a difficult environment while driving continued product innovation to support long-term growth."

2021 Outlook

Given the continued uncertainty related to the global pandemic and the impact on hospitals, the Company is now targeting the lower end of its previously issued full-year 2021 revenue guidance of $1.015 billion to $1.035 billion. Based on recent exchange rates, the Company expects approximately 100 basis points of foreign exchange headwind to fourth quarter revenue growth.

The Company now expects full-year 2021 adjusted diluted net earnings per share in the range of $3.18 to $3.23, compared to its prior range of $3.15 to $3.25.

Supplemental Financial Disclosures

(1) A reconciliation of reported diluted net earnings 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 2021 results.

To participate in the conference call, dial 1-844-889-7792 (domestic) or +1-661-378-9936 (international) and refer to the passcode 6396565.

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 27, 2021, until 7:30 p.m. ET on Wednesday, November 3, 2021. To hear this recording, dial 1-855-859-2056 (domestic) or +1-404-537-3406 (international) and enter the passcode 6396565.

Consolidated Condensed Statements of Income (Loss)

(in thousands, except per share amounts, unaudited)



Three Months Ended Nine Months Ended

September 30, September 30,

2021 2020 2021 2020



Net sales $ 248,827 $ 237,835 $ 736,665 $ 609,631

Cost of sales 106,521 104,137 324,485 284,845

Gross profit 142,306 133,698 412,180 324,786

% of sales 57.2 % 56.2 % 56.0 % 53.3 %

Selling & administrative 104,736 94,380 307,476 274,721 expense

Research & development 10,859 9,936 32,203 28,756 expense

Income from operations 26,711 29,382 72,501 21,309

% of sales 10.7 % 12.4 % 9.8 % 3.5 %

Interest expense 8,145 11,943 27,917 32,938

Other expense 1,127 89 1,127 266

Income (loss) before income 17,439 17,350 43,457 (11,895 )taxes

Provision for income taxes 2,491 10,500 5,359 2,728

Net income (loss) $ 14,948 $ 6,850 $ 38,098 $ (14,623 )



Basic EPS $ 0.51 $ 0.24 $ 1.31 $ (0.51 )

Diluted EPS 0.47 0.23 1.19 (0.51 )



Basic shares 29,179 28,583 29,097 28,529

Diluted shares 32,143 29,426 32,020 28,529

Sales Summary

(in millions, unaudited)

Three Months Ended September 30,

% Change

Domestic

International

2021

2020

As Reported

Impact of Foreign Currency

Constant Currency

As Reported

As Reported

Impact of Foreign Currency

Constant Currency

Orthopedic Surgery

$ 105.7

$ 102.2

3.5%

-0.6%

2.9%

-2.5%

7.1%

-0.8%

6.3%

General Surgery

143.1

135.6

5.5%

-0.2%

5.3%

3.3%

10.6%

-0.6%

10.0%

$ 248.8

$ 237.8

4.6%

-0.3%

4.3%

1.6%

8.5%

-0.8%

7.7%

Single-use Products

$ 200.9

$ 190.9

5.3%

-0.4%

4.9%

3.0%

8.4%

-0.8%

7.6%

Capital Products

47.9

46.9

2.0%

-0.4%

1.6%

-4.5%

8.9%

-0.9%

8.0%

$ 248.8

$ 237.8

4.6%

-0.3%

4.3%

1.6%

8.5%

-0.8%

7.7%

Domestic

$ 136.4

$ 134.2

1.6%

0.0%

1.6%

International

112.4

103.6

8.5%

-0.8%

7.7%

$ 248.8

$ 237.8

4.6%

-0.3%

4.3%

Nine Months Ended September 30,

% Change

Domestic

International

2021

2020

As Reported

Impact of Foreign Currency

Constant Currency

As Reported

As Reported

Impact of Foreign Currency

Constant Currency

Orthopedic Surgery

$ 320.8

$ 261.9

22.5%

-2.2%

20.3%

19.0%

24.5%

-3.5%

21.0%

General Surgery

415.9

347.7

19.6%

-1.1%

18.5%

18.5%

22.2%

-3.6%

18.6%

$ 736.7

$ 609.6

20.8%

-1.5%

19.3%

18.6%

23.6%

-3.5%

20.1%

Single-use Products

$ 597.3

$ 497.1

20.1%

-1.5%

18.6%

17.4%

23.9%

-3.6%

20.3%

Capital Products

139.4

112.5

23.9%

-1.8%

22.1%

25.4%

22.6%

-3.4%

19.2%

$ 736.7

$ 609.6

20.8%

-1.5%

19.3%

18.6%

23.6%

-3.5%

20.1%

Domestic

$ 404.0

$ 340.5

18.6%

0.0%

18.6%

International

332.7

269.1

23.6%

-3.5%

20.1%

$ 736.7

$ 609.6

20.8%

-1.5%

19.3%

Sales Summary

(in millions, unaudited)

Three Months Ended September 30,

% Change

Domestic International

Impact Impact 2021 2020 As of Constant As As of Constant Reported Foreign Currency Reported Reported Foreign Currency Currency Currency

Orthopedic $ $ 3.5% -0.6% 2.9% -2.5% 7.1% -0.8% 6.3%Surgery 105.7 102.2

General 143.1 135.6 5.5% -0.2% 5.3% 3.3% 10.6% -0.6% 10.0%Surgery

$ $ 4.6% -0.3% 4.3% 1.6% 8.5% -0.8% 7.7% 248.8 237.8

Single-use $ $ 5.3% -0.4% 4.9% 3.0% 8.4% -0.8% 7.6%Products 200.9 190.9

Capital 47.9 46.9 2.0% -0.4% 1.6% -4.5% 8.9% -0.9% 8.0%Products

$ $ 4.6% -0.3% 4.3% 1.6% 8.5% -0.8% 7.7% 248.8 237.8

Domestic $ $ 1.6% 0.0% 1.6% 136.4 134.2

International 112.4 103.6 8.5% -0.8% 7.7%

$ $ 4.6% -0.3% 4.3% 248.8 237.8

Nine Months Ended September 30,

% Change

Domestic International

Impact Impact 2021 2020 As of Constant As As of Constant Reported Foreign Currency Reported Reported Foreign Currency Currency Currency

Orthopedic $ $ 22.5% -2.2% 20.3% 19.0% 24.5% -3.5% 21.0%Surgery 320.8 261.9

General 415.9 347.7 19.6% -1.1% 18.5% 18.5% 22.2% -3.6% 18.6%Surgery

$ $ 20.8% -1.5% 19.3% 18.6% 23.6% -3.5% 20.1% 736.7 609.6

Single-use $ $ 20.1% -1.5% 18.6% 17.4% 23.9% -3.6% 20.3%Products 597.3 497.1

Capital 139.4 112.5 23.9% -1.8% 22.1% 25.4% 22.6% -3.4% 19.2%Products

$ $ 20.8% -1.5% 19.3% 18.6% 23.6% -3.5% 20.1% 736.7 609.6

Domestic $ $ 18.6% 0.0% 18.6% 404.0 340.5

International 332.7 269.1 23.6% -3.5% 20.1%

$ $ 20.8% -1.5% 19.3% 736.7 609.6

Reconciliation of Reported Net Income to Adjusted Net Income

(in thousands, except per share amounts, unaudited)

Three Months Ended September 30, 2021

Gross Profit

Selling & Administrative Expense

Operating Income

Interest Expense

Other Expense

Tax Expense

Effective Tax Rate

Net Income

Diluted EPS

As reported

$

142,306

$

104,736

$

26,711

$

8,145

$

1,127

$

2,491

14.3

%

$

14,948

$

0.47

% of sales

57.2

%

42.1

%

10.7

%

Debt refinancing costs (1)

-

-

-

-

(1,127

)

281

846

$

142,306

$

104,736

$

26,711

$

8,145

$

-

$

2,772

$

15,794

Adjusted gross profit %

57.2

%

Amortization(5)

$

1,500

(6,796

)

8,296

(3,410

)

-

2,798

8,908

Adjusted net income

$

97,940

$

35,007

$

4,735

$

-

$

5,570

18.4

%

$

24,702

$

0.80

% of sales

39.4

%

14.1

%

Diluted shares outstanding

30,431

Additional potential dilutive shares from in-the-money convertible notes(6)

1,712

Diluted shares, as reported

32,143

Convertible note hedges(7)

(1,244

)

Diluted shares, as adjusted

30,899

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 (2)

-

(1,009

)

1,009

-

-

(87

)

1,096

Acquisition and integration costs (3)

796

-

796

-

-

(366

)

1,162

Manufacturing consolidation costs (4)

606

-

606

-

-

(352

)

958

$

135,100

$

93,371

$

31,793

$

11,943

$

89

$

9,695

$

10,066

Adjusted gross profit %

56.8

%

Amortization(5)

$

1,500

(6,992

)

8,492

(3,439

)

-

(3,980

)

15,911

Adjusted net income

$

86,379

$

40,285

$

8,504

$

89

$

5,715

18.0

%

$

25,977

$

0.88

% of sales

36.3

%

16.9

%

(1) In 2021, the Company incurred costs related to a loss on early extinguishment and third party fees associated with the seventh amended and restated senior credit agreement.

(2) In 2020, the Company incurred restructuring costs related to restructuring of our sales force.

(3) In 2020, the Company incurred inventory adjustments associated with a prior acquisition.

(4) In 2020, 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.

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

(6) In 2021, the Company's average share price exceeded the conversion price of our 2.625% convertible notes due in 2024 (the "Notes") resulting in additional potential diluted shares.

(7) Non-GAAP adjusted dilutive weighted average shares outstanding exclude dilution that is expected to be offset by the Company's convertible note hedge transactions.

Reconciliation of Reported Net Income to Adjusted Net Income

(in thousands, except per share amounts, unaudited)

Three Months Ended September 30, 2021

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

As reported $ 142,306 $ 104,736 $ 26,711 $ 8,145 $ 1,127 $ 2,491 14.3 % $ 14,948 $ 0.47

% of sales 57.2 % 42.1 % 10.7 %

Debtrefinancing - - - - (1,127 ) 281 846costs^ (1)

$ 142,306 $ 104,736 $ 26,711 $ 8,145 $ - $ 2,772 $ 15,794

Adjustedgross profit 57.2 %%

Amortization^ $ 1,500 (6,796 ) 8,296 (3,410 ) - 2,798 8,908 (5)

Adjusted net $ 97,940 $ 35,007 $ 4,735 $ - $ 5,570 18.4 % $ 24,702 $ 0.80 income

% of sales 39.4 % 14.1 %

Dilutedshares 30,431 outstanding

Additionalpotentialdilutiveshares from 1,712 in-the-moneyconvertiblenotes^(6)

Dilutedshares, as 32,143 reported

Convertiblenote hedges^ (1,244 )(7)

Dilutedshares, as 30,899 adjusted

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 ) 1,096costs ^(2)

Acquisitionand 796 - 796 - - (366 ) 1,162integrationcosts ^(3)

Manufacturingconsolidation 606 - 606 - - (352 ) 958costs ^(4)

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

Adjustedgross profit 56.8 %%

Amortization^ $ 1,500 (6,992 ) 8,492 (3,439 ) - (3,980 ) 15,911 (5)

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

% of sales 36.3 % 16.9 %









(1) In 2021, the Company incurred costs related to a loss on earlyextinguishment and third party fees associated with the seventh amended andrestated senior credit agreement.

(2) In 2020, the Company incurred restructuring costs related to restructuringof our sales force.

(3) In 2020, the Company incurred inventory adjustments associated with a prioracquisition.

(4) In 2020, the Company incurred costs related to the consolidation of certainmanufacturing operations. These costs related to winding down operations atcertain locations and moving production lines to other facilities.

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

(6) In 2021, the Company's average share price exceeded the conversion price ofour 2.625% convertible notes due in 2024 (the "Notes") resulting in additionalpotential diluted shares.

(7) Non-GAAP adjusted dilutive weighted average shares outstanding excludedilution that is expected to be offset by the Company's convertible note hedgetransactions.

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

(in thousands, except per share amounts, unaudited)

Nine Months Ended September 30, 2021

Gross Profit

Selling & Administrative Expense

Operating Income

Interest Expense

Other Expense

Tax Expense

Effective Tax Rate

Net Income

Diluted EPS

As reported

$

412,180

$

307,476

$

72,501

$

27,917

$

1,127

$

5,359

12.3

%

$

38,098

$

1.19

% of sales

56.0

%

41.7

%

9.8

%

Restructuring and related costs (1)

-

(414

)

414

-

-

109

305

Debt refinancing costs (2)

-

-

-

-

(1,127

)

281

846

$

412,180

$

307,062

$

72,915

$

27,917

$

-

$

5,749

$

39,249

Adjusted gross profit %

56.0

%

Amortization(7)

$

4,500

(20,323

)

24,823

(10,557

)

-

8,653

26,727

Adjusted net income

$

286,739

$

97,738

$

17,360

$

-

$

14,402

17.9

%

$

65,976

$

2.14

% of sales

38.9

%

13.3

%

Diluted shares outstanding

30,380

Additional potential dilutive shares from in-the-money convertible notes(8)

1,640

Diluted shares, as reported

32,020

Convertible note hedges(9)

(1,213

)

Diluted shares, as adjusted

30,807

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 (3)

6,586

-

6,586

-

-

739

5,847

Product rationalization costs (4)

2,169

(2,095

)

4,264

-

-

460

3,804

Restructuring and related costs (1)

1,087

(3,133

)

4,220

-

-

259

3,961

Acquisition and integration costs (5)

2,253

(1,192

)

3,445

-

-

356

3,089

Manufacturing consolidation costs (6)

3,993

-

3,993

-

-

485

3,508

$

340,874

$

268,301

$

43,817

$

32,938

$

266

$

5,027

$

5,586

Adjusted gross profit %

55.9

%

Amortization(7)

$

4,500

(20,947

)

25,447

(9,936

)

-

1,795

33,588

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(10)

859

Diluted shares, as adjusted

29,388

(1) In 2021, the Company incurred restructuring costs related to restructuring of our sales force. In 2020, the Company incurred restructuring costs related to a voluntary separation arrangement with employees as a result of the COVID-19 pandemic and restructuring of our sales force.

(2) In 2021, the Company incurred costs related to a loss on early extinguishment and third party fees associated with the seventh amended and restated senior credit agreement.

(3) 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.

(4) 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.

(5) 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.

(6) In 2020, 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.

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

(8) In 2021, the Company's average share price exceeded the conversion price of our 2.625% convertible notes due in 2024 (the "Notes") resulting in additional potential diluted shares.

(9) Non-GAAP adjusted dilutive weighted average shares outstanding exclude dilution that is expected to be offset by the Company's convertible note hedge transactions.

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

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

(in thousands, except per share amounts, unaudited)

Nine Months Ended September 30, 2021

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

As reported $ 412,180 $ 307,476 $ 72,501 $ 27,917 $ 1,127 $ 5,359 12.3 % $ 38,098 $ 1.19

% of sales 56.0 % 41.7 % 9.8 %

Restructuringand related - (414 ) 414 - - 109 305 costs ^(1)

Debt refinancing - - - - (1,127 ) 281 846 costs^ (2)

$ 412,180 $ 307,062 $ 72,915 $ 27,917 $ - $ 5,749 $ 39,249

Adjusted gross 56.0 %profit %

Amortization^(7) $ 4,500 (20,323 ) 24,823 (10,557 ) - 8,653 26,727

Adjusted net $ 286,739 $ 97,738 $ 17,360 $ - $ 14,402 17.9 % $ 65,976 $ 2.14 income

% of sales 38.9 % 13.3 %

Diluted shares 30,380 outstanding

Additional potential dilutive shares from 1,640 in-the-money convertible notes^(8)

Diluted shares, 32,020 as reported

Convertible note (1,213 )hedges^(9)

Diluted shares, 30,807 as adjusted

Nine Months Ended September 30, 2020

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

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 %

Plantunderutilization 6,586 - 6,586 - - 739 5,847 costs ^(3)

Productrationalization 2,169 (2,095 ) 4,264 - - 460 3,804 costs ^(4)

Restructuringand related 1,087 (3,133 ) 4,220 - - 259 3,961 costs ^(1)

Acquisition andintegration 2,253 (1,192 ) 3,445 - - 356 3,089 costs ^(5)

Manufacturingconsolidation 3,993 - 3,993 - - 485 3,508 costs ^(6)

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

Adjusted gross 55.9 %profit %

Amortization^(7) $ 4,500 (20,947 ) 25,447 (9,936 ) - 1,795 33,588

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 ofdilutive shares 859 assuming netearnings^(10)

Diluted shares, 29,388 as adjusted

(1) In 2021, the Company incurred restructuring costs related to restructuringof our sales force. In 2020, the Company incurred restructuring costs relatedto a voluntary separation arrangement with employees as a result of theCOVID-19 pandemic and restructuring of our sales force.

(2) In 2021, the Company incurred costs related to a loss on earlyextinguishment and third party fees associated with the seventh amended andrestated senior credit agreement.

(3) 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.

(4) 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.

(5) In 2020, the Company incurred inventory adjustments associated with a prioracquisition and severance and integration costs mainly related to the BuffaloFilter, LLC acquisition.

(6) In 2020, the Company incurred costs related to the consolidation of certainmanufacturing operations. These costs related to winding down operations atcertain locations and moving production lines to other facilities.

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

(8) In 2021, the Company's average share price exceeded the conversion price ofour 2.625% convertible notes due in 2024 (the "Notes") resulting in additionalpotential diluted shares.

(9) Non-GAAP adjusted dilutive weighted average shares outstanding excludedilution that is expected to be offset by the Company's convertible note hedgetransactions.

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



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

(in thousands, unaudited)

Three Months Ended

Nine Months Ended

September 30,

September 30,

2021

2020

2021

2020

Net income (loss)

$

14,948

$

6,850

$

38,098

$

(14,623

)

Provision for income taxes

2,491

10,500

5,359

2,728

Interest expense

8,145

11,943

27,917

32,938

Depreciation

3,778

4,383

12,519

13,617

Amortization

13,432

13,580

40,747

40,973

EBITDA

$

42,794

$

47,256

$

124,640

$

75,633

Stock based compensation

4,327

3,532

12,003

10,119

Plant underutilization costs

-

-

-

6,586

Product rationalization costs

-

-

-

4,264

Restructuring and related costs

-

1,009

414

4,220

Manufacturing consolidation costs

-

606

-

3,993

Acquisition and integration costs

-

796

-

3,445

Debt refinancing costs

1,127

-

1,127

-

Adjusted EBITDA

$

48,248

$

53,199

$

138,184

$

108,260

EBITDA Margin

EBITDA

17.2

%

19.9

%

16.9

%

12.4

%

Adjusted EBITDA

19.4

%

22.4

%

18.8

%

17.8

%

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, thoracic surgery, and gastroenterology. For more information, visit www.conmed.com.

Forward-Looking Statements

This press release and the associated 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, 2020 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 W. Garner Chief Financial Officer 727-214-2975 ToddGarner@conmed.com