CONMED (US:CNMD)2025-11-05 21:15Financial Performance - Third quarter 2025 sales reached $337.9 million, a 6.7% increase year-over-year, with a 6.3% increase in constant currency[5] - Domestic revenue grew by 5.9% year-over-year, while international revenue increased by 7.8% as reported and 6.8% in constant currency[5] - The company reported diluted net earnings per share of $0.09 for Q3 2025, down from $1.57 in Q3 2024[5] - Gross profit margin for Q3 2025 was 49.2%, compared to 56.5% in Q3 2024[10] - Adjusted net income for the nine months ended September 30, 2025, was $98,646, with an EPS of $3.17[18] - Net income for the three months ended September 30, 2025, was $2,859 million, a significant decrease from $48,984 million in the same period of 2024[26] - Adjusted net income for the nine months ended September 30, 2025, was $30,316 million, compared to $98,668 million in the same period of 2024[26] Revenue Guidance - The company anticipates full-year reported revenue to be between $1.365 billion and $1.372 billion, slightly adjusted from the previous guidance[3] Expenses and Costs - Research and development expenses for Q3 2025 were $13.9 million, compared to $13.6 million in Q3 2024[10] - Income from operations for Q3 2025 was $11.9 million, representing 3.5% of sales, down from 20.7% in Q3 2024[10] - Selling and administrative expenses for the nine months ended September 30, 2025, totaled $425,207, accounting for 42.5% of sales[18] - The company incurred $19,653 in product rationalization costs in 2025, impacting overall profitability[18] - The company incurred product rationalization costs of $19,653 million for the three months ended September 30, 2025[26] - Legal matters incurred costs of $4,566 in 2024, affecting overall expenses[20] - Amortization costs for the nine months ended September 30, 2025, were $4,500, affecting adjusted net income[18] Profitability Metrics - Adjusted gross profit margin for the nine months ended September 30, 2024, was 55.8%[20] - EBITDA margin for the three months ended September 30, 2025, was 9.0%, down from 26.4% in the same period of 2024[26] - Adjusted EBITDA for the three months ended September 30, 2025, was $65,629 million, compared to $64,640 million in the same period of 2024, reflecting a growth of 1.5%[26] Shareholder Actions - A $150.0 million share repurchase program was authorized, with plans to repurchase at least $25.0 million in shares annually starting in 2026[5] - The company suspended its quarterly cash dividend as part of the modified share repurchase program[6] Tax and Interest - The effective tax rate for the nine months ended September 30, 2025, was 27.6%[18] - Total interest expense for the nine months ended September 30, 2025, was $23,716 million, a decrease from $28,440 million in the same period of 2024[26] - The provision for income taxes for the three months ended September 30, 2025, was $1,414 million, compared to $7,471 million in the same period of 2024[26] Non-GAAP Measures - The company emphasizes the importance of non-GAAP measures, including adjusted EBITDA, for assessing its financial performance and future prospects[29] - The company analyzes net sales on a constant currency basis to measure comparability between periods, excluding the impact of foreign currency exchange rates[30] Forward-Looking Statements - Forward-looking statements indicate potential risks and uncertainties that could affect actual results, as detailed in the company's filings with the SEC[28]