CONMED Corporation Withdraws 2022 Financial Outlook due to Temporary Impact from Software Implementation; Provides 2023 Financial Outlook
November 15 2022 - 7:00AM
Business Wire
CONMED Corporation (NYSE: CNMD) today announced that due to a
temporary disruption resulting from the implementation of new
warehouse management software, the Company is withdrawing its
previously issued full-year 2022 financial outlook.
In recent weeks, the Company began implementing new software
designed to increase the efficiency and performance of its primary
distribution facility. The implementation of this new software
created shipping disruptions that lasted longer than originally
projected. The Company is currently unable to fully assess the
impact on fourth-quarter sales and profitability as it continues to
incur costs while working to reduce the shipping backlog. Daily
shipment volumes have returned to normal levels, and the Company
has reduced the shipping backlog from a peak of approximately $35
million last week to approximately $28 million today. The Company
believes the backlog of open orders will be shipped in the coming
weeks and anticipates the impact to business performance will be
limited to the fourth quarter of 2022. The withdrawal of the
full-year 2022 financial outlook is solely attributable to the
impact of this software implementation.
2023 Financial Outlook
For the full-year 2023, the Company expects reported revenue
between $1.170 billion and $1.230 billion and adjusted diluted net
earnings per share1 in the range of $3.20 to $3.50.
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 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 and other 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, 2021, listed under the heading
Forward-Looking Statements in the Company’s most recently filed
Form 10-Q, and the risks associated with the timing and costs
related to the software implementation as further described in the
risk factors listed in the Current Report filed on Form 8-K on
November 15, 2022. 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 generally accepted accounting
principles in the United States (GAAP) with certain non-GAAP
financial measures, including adjusted diluted net earnings per
share. 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 these adjusted measures 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. 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.
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. adjusted diluted net earnings per share should not be
considered in isolation or as a substitute for diluted net earnings
(loss) per share, the most directly comparable GAAP financial
measure. 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.
1 We are unable to present a quantitative reconciliation of our
expected diluted net earnings per share to expected adjusted
diluted net earnings per share as we are unable to predict with
reasonable certainty and without unreasonable effort the impact and
timing of acquisition-related and other charges. The financial
impact of these items is uncertain and is dependent on various
factors, including timing, and could be material to our
Consolidated Statements of Comprehensive Income (Loss).
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CONMED Corporation Todd W. Garner Chief Financial Officer
727-214-2975 ToddGarner@conmed.com
CONMED (NYSE:CNMD)
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