CONMED (US:CNMD)2025-05-01 15:07Financial Performance - Net sales increased by 2.9% to $321.3 million for the three months ended March 31, 2025, compared to $312.3 million in the same period of 2024[89] - Orthopedic surgery sales grew by 2.5% to $138.3 million, driven by growth in procedure-specific, foot and ankle, and BioBrace product offerings[90] - General surgery sales increased by 3.2% to $183.0 million, primarily due to growth in AirSeal, Buffalo Filter, and biliary product offerings[90] - Gross profit margin improved by 20 basis points to 55.3% for the three months ended March 31, 2025, compared to 55.1% in the same period of 2024[88] Expenses - Selling and administrative expenses rose to $148.8 million, representing 46.3% of net sales, an increase of 680 basis points from 39.5% in the prior year[92] - Research and development expenses decreased to $12.9 million, accounting for 4.0% of net sales, down from 4.4% in the same period of 2024[94] - Interest expense decreased to $8.3 million, with a weighted average interest rate of 2.90%, down from 3.18% in the previous year[95] Tax and Compliance - The effective tax rate for the three months ended March 31, 2025, was 21.3%, compared to 22.5% in the same period of 2024[97] - The company was in full compliance with covenants and restrictions of its senior credit agreement as of March 31, 2025[109] Sales and Market - International sales accounted for approximately 43% of consolidated net sales during the three months ended March 31, 2025[83] - There have been no significant changes in primary market risk exposures during the three months ended March 31, 2025[113] Operational Challenges - The company anticipates ongoing supply chain challenges and higher manufacturing costs due to inflation through 2025[84] - The company is experiencing higher manufacturing and operating costs due to inflationary pressures and ongoing supply chain challenges[105] Cash Flow and Capital Management - The net working capital position was $355.9 million as of March 31, 2025, with net cash provided by operating activities increasing to $41.5 million from $29.1 million year-over-year[102] - Capital expenditures rose to $3.8 million in the three months ended March 31, 2025, compared to $2.0 million in the same period a year ago[103] - Net cash used in financing activities increased to $28.4 million in the three months ended March 31, 2025, up from $17.0 million in 2024[104] - The company repaid $14.6 million on its term loan during the three months ended March 31, 2025, and paid $7.2 million in contingent consideration related to the Biorez acquisition[108] - As of March 31, 2025, there were $100.0 million in borrowings outstanding on the term loan facility, with no borrowings under the revolving credit facility and available borrowings of $583.4 million[106] - Management believes cash flow from operations will be adequate to meet anticipated operating working capital requirements and capital expenditures in the foreseeable future[104] Shareholder Returns - The Board of Directors authorized a $200.0 million share repurchase program, with $162.6 million spent to repurchase 6.1 million shares by March 31, 2025[111]