CONMED (CNMD) - 2024 Q4 - Annual Results

Financial Performance - Fourth quarter 2024 sales reached $345.9 million, a year-over-year increase of 5.8$1.307 billion, reflecting a 5.0% increase year-over-year as reported and 5.3% in constant currency[6] - Adjusted diluted net earnings per share for the fourth quarter were $1.34, marking a 26.4$1.344 billion and $1.372 billion, indicating a year-over-year constant currency growth of approximately 4$4.25 to $4.40, accounting for a currency headwind of approximately$0.15 to $0.20[4] - Domestic revenue for the fourth quarter increased by 6.8$33.8 million for the fourth quarter, slightly up from $33.1 million in the same period last year[11] - Total revenue for the year ended December 31, 2024, was$733.0 million, with a gross profit margin of 56.1%[19] Profitability Metrics - Gross profit margin for the fourth quarter was 57.3%, compared to 55.7% in the fourth quarter of 2023[11] - Reported gross profit for Q4 2024 was $198.3 million, representing 57.3$182.2 million (55.7% of sales) in Q4 2023[15] - Adjusted net income for Q4 2024 was $41.8 million, with diluted EPS of$1.34, up from $33.2 million and$1.06 in Q4 2023[15] - Adjusted EBITDA for Q4 2024 was $80.0 million, with an adjusted EBITDA margin of 23.1$54.4 million, compared to $52.6 million in 2023[11] - The company incurred$955,000 in costs due to Hurricane Milton impacting the Largo, FL facility in 2024[16] - The company recorded lease impairment expenses of $606,000 in Q4 2024[16] Strategic Focus and Future Outlook - The company aims to enhance operations and establish a stronger foundation for future above-market revenue and profitability growth in 2025[2] - The company plans to continue focusing on market expansion and new product development in the upcoming quarters[29] Non-GAAP Financial Measures - The company utilizes non-GAAP financial measures to provide meaningful insights into its financial results, including percentage sales growth in constant currency and adjusted net income[31] - Net sales on a constant currency basis is analyzed to measure comparability of results between periods, excluding the impact of foreign currency exchange rates[32] - The company emphasizes that non-GAAP measures should not be considered in isolation and encourages a comprehensive review of financial statements[33] - Adjusted measures are important indicators of operations as they exclude items not indicative of core operating results, providing a baseline for analyzing trends[31] - The company believes that EBITDA is a useful non-GAAP measurement for assessing aspects of cash flow[31] - Management bases certain incentive compensation on non-GAAP financial measures, reflecting their importance in reviewing operating results[31] Risk Factors and Forward-Looking Statements - The company’s Annual Report on Form 10-K discusses risk factors that could cause actual results to differ from forward-looking statements[30] - Forward-looking statements are made under the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, indicating management's expectations for future performance[30] - The financial impact of certain items affecting earnings performance is uncertain and may be material to consolidated statements of income[34] - The company is unable to provide a quantitative reconciliation of expected diluted net earnings per share to expected adjusted diluted net earnings per share due to uncertainties related to acquisition and integration charges[34]