CONMED (CNMD) - 2021 Q2 - Quarterly Report

PART I FINANCIAL INFORMATION](index=3&type=section&id=PART%20I%20FINANCIAL%20INFORMATION) This section provides a comprehensive overview of CONMED Corporation's unaudited financial performance and position, including detailed statements and explanatory notes Item 1. Financial Statements (unaudited) This section presents the unaudited consolidated condensed financial statements for CONMED Corporation, including statements of comprehensive income (loss), balance sheets, statements of shareholders' equity, and statements of cash flows, along with detailed notes explaining various financial items, accounting policies, and significant events Consolidated Condensed Statements of Comprehensive Income (Loss) Presents the unaudited consolidated statements of comprehensive income (loss), detailing net sales, income, and earnings per share for specified periods Net Sales and Income (Loss) (Three Months Ended June 30, in thousands): | Metric | 2021 | 2020 | Change | | :----- | :--- | :--- | :----- | | Net Sales | $255,161 | $157,785 | +61.7% | | Net Income (Loss) | $13,290 | $(27,400) | Turnaround from loss | | Basic EPS | $0.46 | $(0.96) | Turnaround from loss | | Diluted EPS | $0.41 | $(0.96) | Turnaround from loss | Net Sales and Income (Loss) (Six Months Ended June 30, in thousands): | Metric | 2021 | 2020 | Change | | :----- | :--- | :--- | :----- | | Net Sales | $487,837 | $371,796 | +31.2% | | Net Income (Loss) | $23,150 | $(21,473) | Turnaround from loss | | Basic EPS | $0.80 | $(0.75) | Turnaround from loss | | Diluted EPS | $0.72 | $(0.75) | Turnaround from loss | Consolidated Condensed Balance Sheets Details the company's financial position, including total assets, liabilities, and shareholders' equity at specific reporting dates Balance Sheet Highlights (in thousands): | Metric | June 30, 2021 | December 31, 2020 | Change | | :----- | :------------ | :---------------- | :----- | | Total Current Assets | $443,180 | $416,654 | +6.37% | | Total Assets | $1,761,974 | $1,751,673 | +0.59% | | Total Current Liabilities | $198,458 | $190,201 | +4.34% | | Total Liabilities | $1,017,475 | $1,042,635 | -2.41% | | Total Shareholders' Equity | $744,499 | $709,038 | +4.99% | Consolidated Condensed Statements of Shareholders' Equity Outlines changes in shareholders' equity, reflecting net income, comprehensive income, and dividend distributions over the reporting period Shareholders' Equity Changes (Six Months Ended June 30, 2021, in thousands): | Metric | Balance Dec 31, 2020 | Net Income | Total Comprehensive Income | Balance June 30, 2021 | | :----- | :------------------- | :--------- | :------------------------- | :-------------------- | | Total Shareholders' Equity | $709,038 | $23,150 | $28,486 | $744,499 | - Dividends on common stock were $0.20 per share for both the three and six months ended June 30, 2021 and 2020[16][19] Consolidated Condensed Statements of Cash Flows Summarizes cash flows from operating, investing, and financing activities, showing the net change in cash and cash equivalents Cash Flow Summary (Six Months Ended June 30, in thousands): | Metric | 2021 | 2020 | Change | | :----- | :--- | :--- | :----- | | Net cash provided by operating activities | $56,623 | $9,260 | +511.48% | | Net cash used in investing activities | $(6,103) | $(10,429) | -41.50% | | Net cash provided by (used in) financing activities | $(30,967) | $10,770 | Turnaround from inflow to outflow | | Net increase in cash and cash equivalents | $19,032 | $9,127 | +108.53% | | Cash and cash equivalents at end of period | $46,388 | $34,983 | +32.60% | Notes to Consolidated Condensed Financial Statements This section provides detailed explanations and disclosures for the financial statements, covering operations, accounting policies, revenue recognition, comprehensive income, fair value measurements, inventories, earnings per share, goodwill and intangible assets, long-term debt, guarantees, pension plans, acquisition and other expenses, business segments, legal proceedings, new accounting pronouncements, and subsequent events Note 1 – Operations Describes CONMED Corporation as a medical technology company specializing in surgical devices and equipment for minimally invasive procedures - CONMED Corporation is a medical technology company providing surgical devices and equipment for minimally invasive procedures in orthopedics, general surgery, gynecology, thoracic surgery, and gastroenterology[24] Note 2 - Interim Financial Information Explains the basis of preparation for unaudited interim financial statements, adhering to GAAP and Form 10-Q requirements - Unaudited consolidated condensed financial statements are prepared in accordance with GAAP for interim financial information and Form 10-Q instructions[25] - Management's estimates and assumptions are used, and actual results may differ. No specific event requires an update to estimates as of July 29, 2021, despite COVID-19 uncertainty[27][28] Note 3 - Revenues Provides a breakdown of net sales by geographic market and details changes in contract liabilities for extended warranties Net Sales by Geographic Market (Three Months Ended June 30, in thousands): | Region | 2021 | 2020 | Change | | :----- | :--- | :--- | :----- | | United States | $143,590 | $87,425 | +64.25% | | Europe, Middle East & Africa | $47,263 | $29,861 | +58.21% | | Asia Pacific | $42,420 | $30,280 | +40.09% | | Americas (excl. US) | $21,888 | $10,219 | +114.19% | | Total Sales | $255,161 | $157,785 | +61.70% | Net Sales by Geographic Market (Six Months Ended June 30, in thousands): | Region | 2021 | 2020 | Change | | :----- | :--- | :--- | :----- | | United States | $267,532 | $206,273 | +29.70% | | Europe, Middle East & Africa | $91,860 | $72,383 | +26.91% | | Asia Pacific | $81,684 | $59,138 | +38.12% | | Americas (excl. US) | $46,761 | $34,002 | +37.52% | | Total Sales | $487,837 | $371,796 | +31.19% | - Contract liability for extended warranties increased to $15.08 million at June 30, 2021, from $13.67 million at December 31, 2020[30] Note 4 – Comprehensive Income (Loss) Presents the components of comprehensive income (loss), including net income and other comprehensive income (loss) items Comprehensive Income (Loss) (Three Months Ended June 30, in thousands): | Metric | 2021 | 2020 | | :----- | :--- | :--- | | Net income (loss) | $13,290 | $(27,400) | | Other comprehensive income (loss) | $4,453 | $2,687 | | Comprehensive income (loss) | $17,743 | $(24,713) | Comprehensive Income (Loss) (Six Months Ended June 30, in thousands): | Metric | 2021 | 2020 | | :----- | :--- | :--- | | Net income (loss) | $23,150 | $(21,473) | | Other comprehensive income (loss) | $5,336 | $(4,361) | | Comprehensive income (loss) | $28,486 | $(25,834) | - Accumulated other comprehensive loss decreased to ($58.35 million) at June 30, 2021, from ($63.68 million) at December 31, 2020[32] Note 5 – Fair Value of Financial Instruments Discusses the company's use of derivative instruments to manage market risks and discloses notional contract amounts for forward contracts - The Company uses derivative instruments (forward contracts) to manage interest rate, foreign exchange rate, and commodity price fluctuations, specifically hedging forecasted intercompany sales and currency transaction exposures[34][36][37] Notional Contract Amounts for Forward Contracts (in thousands): | Designation | June 30, 2021 | December 31, 2020 | | :---------- | :------------ | :---------------- | | Cash flow hedge | $172,705 | $154,504 | | Non-designated | $39,270 | $42,380 | - Net unrealized losses of $1.20 million on cash flow hedges are expected to be recognized in earnings within the next twelve months[44] Note 6 - Inventories Details the composition of inventories, including raw materials, work-in-process, and finished goods at specific reporting dates Inventory Composition (in thousands): | Category | June 30, 2021 | December 31, 2020 | Change | | :------- | :------------ | :---------------- | :----- | | Raw materials | $72,090 | $71,807 | +0.39% | | Work-in-process | $17,828 | $15,864 | +12.38% | | Finished goods | $121,405 | $107,197 | +13.25% | | Total Inventories | $211,323 | $194,868 | +8.44% | Note 7 – Earnings (Loss) Per Share Provides the calculation of basic and diluted earnings per share, including the impact of convertible notes and warrants Basic and Diluted EPS (Three Months Ended June 30): | Metric | 2021 | 2020 | | :----- | :--- | :--- | | Basic EPS | $0.46 | $(0.96) | | Diluted EPS | $0.41 | $(0.96) | Basic and Diluted EPS (Six Months Ended June 30): | Metric | 2021 | 2020 | | :----- | :--- | :--- | | Basic EPS | $0.80 | $(0.75) | | Diluted EPS | $0.72 | $(0.75) | - The calculation of diluted EPS for 2021 included 1.4 million (three months) and 1.2 million (six months) shares from convertible notes, and an additional 0.6 million (three months) and 0.4 million (six months) shares from warrants, as the average share price exceeded conversion/strike prices[59][61] Note 8 – Goodwill and Other Intangible Assets Reports the balances of goodwill and other intangible assets, along with amortization expense and foreign currency adjustments - Goodwill balance remained stable at $618.28 million as of June 30, 2021, with minor foreign currency translation adjustments[63] Other Intangible Assets (June 30, 2021, in thousands): | Category | Gross Carrying Amount | Accumulated Amortization | Net Carrying Amount | | :------- | :-------------------- | :----------------------- | :------------------ | | Customer and distributor relationships | $342,575 | $(143,738) | $198,837 | | Sales representation, marketing and promotional rights | $149,376 | $(57,000) | $92,376 | | Developed technology | $106,604 | $(23,112) | $83,492 | | Patents and other intangible assets | $75,235 | $(49,861) | $25,374 | | Trademarks and tradenames (indefinite life) | $86,544 | $0 | $86,544 | | Total | $760,334 | $(273,711) | $486,623 | - Amortization expense for intangible assets was $8.20 million (three months) and $16.60 million (six months) for 2021, included in revenue reduction or selling and administrative expense[65] Note 9 - Long-Term Debt Outlines the composition of long-term debt, including revolving credit, term loans, and convertible notes, and recent credit agreement changes Long-Term Debt Composition (in thousands): | Debt Type | June 30, 2021 | December 31, 2020 | Change | | :-------- | :------------ | :---------------- | :----- | | Revolving line of credit | $185,000 | $207,000 | -10.63% | | Term loan (net) | $232,158 | $240,145 | -3.29% | | Convertible notes (net) | $311,823 | $305,904 | +1.93% | | Financing leases | $695 | $587 | +18.40% | | Total Debt | $729,676 | $753,636 | -3.18% | | Less: Current portion | $21,868 | $18,415 | +18.75% | | Total Long-Term Debt | $707,808 | $735,221 | -3.72% | - On July 16, 2021, the Company entered into a seventh amended and restated senior credit agreement, maintaining a $233.50 million term loan and a $585.00 million revolving credit facility, with initial interest rates at LIBOR plus 1.75%[73][104] - The $345.00 million 2.625% convertible notes due 2024 are convertible into cash and common stock under certain conditions, with an initial conversion price of $88.80 per share[74] Note 10 – Guarantees Describes the company's standard and extended warranty programs, including changes in warranty liabilities and related costs - The Company provides standard warranties (generally one year for capital equipment) and sells extended warranties (one to three years)[80] Standard Warranty Liability (in thousands): | Metric | 2021 | 2020 | | :----- | :--- | :--- | | Balance as of January 1 | $1,826 | $2,186 | | Provision for warranties | $864 | $427 | | Claims made | $(440) | $(584) | | Balance as of June 30 | $2,250 | $2,029 | - Costs for extended warranty repairs were $3.40 million (2021) and $3.00 million (2020) for the six months ended June 30[81] Note 11 – Pension Plan Details the net periodic pension cost components and the company's expectations regarding future pension contributions Net Periodic Pension Cost (Six Months Ended June 30, in thousands): | Metric | 2021 | 2020 | | :----- | :--- | :--- | | Service cost | $496 | $358 | | Interest cost | $902 | $1,278 | | Expected return on plan assets | $(2,578) | $(2,510) | | Net amortization and deferral | $1,664 | $1,410 | | Net periodic pension cost | $484 | $536 | - The Company does not expect to make any pension contributions during 2021[82] Note 12 – Acquisition and Other Expense Reports on acquisition-related, restructuring, and other non-recurring expenses, highlighting changes from prior periods - For the three and six months ended June 30, 2021, there were no significant plant underutilization, product rationalization, restructuring, manufacturing consolidation, or acquisition/integration costs recorded in cost of sales or selling and administrative expense, unlike in 2020[84] - In 2021, a $0.40 million charge was recorded for sales force restructuring, primarily termination payments to Orthopedic distributors[86] - Acquisition and Other Expense (Six Months Ended June 30, 2020, in thousands): * Plant underutilization costs: $6,586 * Product rationalization costs - inventory: $2,169 * Restructuring costs: $1,087 * Manufacturing consolidation costs: $3,387 * Acquisition and integration costs (cost of sales): $1,457 * Restructuring and related costs (S&A): $2,124 * Product rationalization costs - field inventory (S&A): $2,095 * Acquisition and integration costs (S&A): $1,192[84] Note 13 — Business Segment Identifies CONMED as a single operating segment and provides a breakdown of net sales by orthopedic and general surgery product lines - CONMED operates as a single operating segment, developing, manufacturing, and selling surgical devices and equipment globally[90] - Product lines include orthopedic surgery (sports medicine, powered surgical instruments, imaging systems) and general surgery (endo-mechanical instrumentation, smoke evacuation, cardiac monitoring, electrosurgical generators)[90] Consolidated Net Sales by Product Line (Six Months Ended June 30, in thousands): | Product Line | 2021 | 2020 | Change | | :----------- | :--- | :--- | :----- | | Orthopedic surgery | $215,058 | $159,766 | +34.60% | | General surgery | $272,779 | $212,030 | +28.65% | | Total | $487,837 | $371,796 | +31.19% | Note 14 – Legal Proceedings Summarizes ongoing legal matters, including government inquiries, product liability claims, and specific breach of contract and personal injury lawsuits - The Company is subject to various government inquiries, enforcement actions (e.g., FCPA), product liability claims, and environmental regulations[91][92][93][94] - Currently defending a breach of contract claim related to the 2014 EndoDynamix acquisition, with a non-jury trial concluded and a ruling expected after September 2021 oral arguments. Plaintiffs seek up to $24.80 million in damages[97] - Defending two Georgia State Court actions alleging personal injury from Ethylene Oxide exposure, with one insurer providing coverage for direct claims and litigation ongoing with another insurer for indemnification claims[98] Note 15 – New Accounting Pronouncements Discusses the potential impact of recently issued accounting standards updates, such as ASU 2020-04 and ASU 2020-06 - ASU 2020-04 (Reference Rate Reform): Provides optional guidance for contracts referencing LIBOR or other discontinued rates, effective through December 31, 2022. The Company has not adopted it but monitors its impact[102] - ASU 2020-06 (Convertible Instruments): Simplifies accounting for convertible instruments by removing certain separation models and addresses diluted EPS calculation. Effective for fiscal years beginning after December 15, 2021, with early adoption permitted. The Company is assessing its impact[103] Note 16 – Subsequent Events Discloses significant events occurring after the balance sheet date, specifically a new senior credit agreement entered into by the company - On July 16, 2021, CONMED entered into a seventh amended and restated senior credit agreement, comprising a $233.50 million term loan and a $585.00 million revolving credit facility, replacing the existing agreement[104] - The new agreement matures on the fifth anniversary of the closing date, with initial interest rates at LIBOR plus 1.75% and includes financial covenants and restrictions[104] Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations Provides management's perspective on financial performance, condition, and outlook, covering operations, liquidity, and critical accounting policies Forward-Looking Statements Highlights that statements about future performance are subject to risks and uncertainties, not guarantees of actual results - Forward-looking statements are identified by words like "anticipates," "expects," "estimates," and "believes," and are not guarantees of future performance[106][107] - These statements involve known and unknown risks and uncertainties, including general economic conditions, regulatory compliance, COVID-19 impacts, environmental risks, competition, technological changes, and litigation[107] Overview Provides a general description of CONMED's business as a medical technology company, its product lines, and revenue streams - CONMED is a medical technology company specializing in surgical devices and equipment for minimally invasive procedures across various medical specialties[110] - Product lines are Orthopedic Surgery (44%) of net sales for six months ended June 30, 2021) and General Surgery (56%) of net sales)[111] - Approximately 81% of revenues are from single-use products, with capital equipment sales facilitating recurring revenue streams. International sales accounted for approximately 45% of total sales for both the six months ended June 30, 2021 and 2020[111] Business Environment Discusses the impact of the COVID-19 pandemic on surgical procedures and the company's revenue recovery, noting ongoing uncertainties - The COVID-19 pandemic significantly impacted the business, leading to postponed non-urgent surgical procedures and temporary facility closures in 2020[112] - Revenues increased in the first six months of 2021 compared to 2020, with general surgery expected to rebound faster than orthopedic surgery[112] - Uncertainty remains regarding the pandemic's duration and severity, potentially influencing sales, suppliers, patients, and customers[112] Critical Accounting Policies Explains that financial statement preparation involves management estimates, particularly for goodwill, intangible assets, and pension obligations - Preparation of financial statements requires management estimates and assumptions, particularly for goodwill, intangible assets, and pension benefit obligations[113] Consolidated Results of Operations Analyzes the company's financial performance, including detailed discussions of net sales, cost of sales, and various operating expenses Key Financial Ratios (as % of Net Sales): | Metric | Three Months Ended June 30, 2021 | Three Months Ended June 30, 2020 | Six Months Ended June 30, 2021 | Six Months Ended June 30, 2020 | | :----- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Gross profit | 55.4% | 45.6% | 55.3% | 51.4% | | Selling and administrative expense | 40.9% | 53.5% | 41.6% | 48.5% | | Research and development expense | 4.4% | 5.5% | 4.4% | 5.1% | | Income (loss) from operations | 10.1% | (13.5)% | 9.4% | (2.2)% | | Net income (loss) | 5.2% | (17.4)% | 4.7% | (5.8)% | Net Sales Analyzes net sales growth by product line and geographic market, distinguishing between reported and constant currency changes Net Sales Growth (Three Months Ended June 30): | Product Line | As Reported % Change | Impact of Foreign Currency % | Constant Currency % Change | | :----------- | :------------------- | :--------------------------- | :------------------------- | | Orthopedic surgery | 78.4% | -5.5% | 72.9% | | General surgery | 51.4% | -2.3% | 49.1% | | Total Net Sales | 61.7% | -3.5% | 58.2% | Net Sales Growth (Six Months Ended June 30): | Product Line | As Reported % Change | Impact of Foreign Currency % | Constant Currency % Change | | :----------- | :------------------- | :--------------------------- | :------------------------- | | Orthopedic surgery | 34.6% | -3.3% | 31.3% | | General surgery | 28.7% | -1.7% | 27.0% | | Total Net Sales | 31.2% | -2.3% | 28.9% | - Sales increases in 2021 were driven by recovery from the COVID-19 pandemic's significant impact in Q2 2020, with growth in single-use orthopedic products and advanced surgical/endoscopic products in general surgery[118][119][120] Cost of Sales Examines changes in cost of sales and gross profit margins, attributing improvements to increased sales and reduced non-recurring costs - Cost of sales increased to $113.70 million (three months) and $218.00 million (six months) in 2021[121] - Gross profit margins increased by 980 basis points to 55.4% (three months) and 390 basis points to 55.3% (six months) in 2021, primarily due to increased sales and the absence of certain 2020 costs (e.g., plant underutilization, product rationalization, restructuring, manufacturing consolidation, inventory step-up)[121][122][125] Selling and Administrative Expense Discusses trends in selling and administrative expenses, both in absolute terms and as a percentage of net sales - Selling and administrative expense increased to $104.40 million (three months) and $202.70 million (six months) in 2021[123] - As a percentage of net sales, it decreased to 40.9% (three months) and 41.6% (six months) in 2021, mainly due to higher sales and continued expense monitoring[123][124] - 2020 expenses included $2.10 million in severance and sales force restructuring, $2.10 million write-off of field inventory, and $0.40 million to $1.20 million in Buffalo Filter acquisition-related costs[124][127] Research and Development Expense Reviews research and development expenditures, noting their change in absolute terms and as a percentage of net sales - R&D expense increased to $11.30 million (three months) and $21.30 million (six months) in 2021[128] - As a percentage of net sales, R&D decreased to 4.4% (three months) and 4.4% (six months) in 2021, driven by higher sales[128] Interest Expense Analyzes the decrease in interest expense due to lower borrowings and reduced weighted average interest rates - Interest expense decreased to $9.40 million (three months) and $19.80 million (six months) in 2021[129] - This decrease is attributed to lower borrowings and a reduction in weighted average interest rates (2.97% for three months, 3.17% for six months in 2021)[129] Other Expense Identifies the nature of other expenses, primarily related to non-service pension costs in prior periods - Other expense in 2020 was related to non-service pension costs[130] Provision (Benefit) for Income Taxes Explains the effective tax rate and the impact of discrete income tax benefits on the company's tax provision - Effective tax rate was 18.4% (expense) for three months and 11.0% (expense) for six months in 2021, compared to 16.3% (benefit) and 26.6% (benefit) in 2020[131] - 2021 tax expense was offset by discrete income tax benefits from federal tax deductions related to stock option exercises (decreasing effective rate by 9.8% and 15.1% for three and six months, respectively)[131] Non-GAAP Financial Measures Defines and explains the use of non-GAAP financial measures like 'constant currency' net sales for performance assessment - "Constant currency" net sales is a non-GAAP measure used to assess comparability by removing foreign currency exchange rate impacts[132] - This measure should not be considered in isolation but as an additional view to GAAP results[133] Liquidity and Capital Resources Assesses the company's ability to meet its financial obligations, focusing on operating cash flows, debt, and available credit - Liquidity needs are primarily for capital investments, working capital, and debt payments, met by operating cash flow and revolving credit facility borrowings[135] - Management believes current cash flow, cash equivalents, and available borrowing capacity are adequate for foreseeable liquidity needs[136][151] - The Company terminated the suspension of required leverage ratios on April 15, 2021, reinstating them after a period of COVID-19 impact[136][142] Operating cash flows Details the significant increase in net cash provided by operating activities, primarily driven by higher net income - Net working capital was $244.70 million at June 30, 2021[137] - Net cash provided by operating activities increased significantly to $56.62 million in the six months ended June 30, 2021, from $9.26 million in the same period of 2020, driven by higher net income[137] Investing cash flows Examines changes in cash flows used in investing activities, mainly due to lower payments for acquisitions and capital expenditures - Net cash used in investing activities decreased by $4.30 million in the six months ended June 30, 2021, compared to 2020, primarily due to lower payments for acquisitions[138] - Capital expenditures were $6.10 million in 2021, slightly down from $6.60 million in 2020[138] Financing cash flows Analyzes the shift in financing cash flows from net inflow to net outflow, reflecting changes in debt and equity transactions - Net cash used in financing activities was $31.00 million in the six months ended June 30, 2021, a shift from $10.77 million provided in 2020[139] - Key changes include net payments of $22.00 million on the revolving line of credit (vs. $38.00 million net borrowings in 2020) and $13.10 million net cash proceeds from employee stock plans (vs. $2.20 million in 2020)[139] - The Company entered into a seventh amended and restated senior credit agreement on July 16, 2021, with a $233.50 million term loan and a $585.00 million revolving credit facility[145] - The Company has $37.40 million remaining available under its $200.00 million share repurchase program, but no shares were purchased in 2021[149][150] New accounting pronouncements Refers to the detailed discussion of new accounting standards in the notes to the financial statements - Refers to Note 15 to the consolidated condensed financial statements for a discussion of new accounting pronouncements[152] Item 3. Quantitative and Qualitative Disclosures About Market Risk States that there have been no significant changes in the Company's primary market risk exposures or their management during the six months ended June 30, 2021, referring to the Annual Report on Form 10-K for further details - No significant changes in market risk exposures or management during the six months ended June 30, 2021[153] - Refers to Item 7A of the Annual Report on Form 10-K for a detailed description of market risk[153] Item 4. Controls and Procedures Management, including the CEO and CFO, evaluated the effectiveness of disclosure controls and procedures, concluding they were effective as of June 30, 2021. No material changes to internal control over financial reporting occurred during the quarter - Disclosure controls and procedures were evaluated and deemed effective as of June 30, 2021[154] - No material changes in internal control over financial reporting occurred during the quarter ended June 30, 2021[154] PART II OTHER INFORMATION](index=32&type=section&id=PART%20II%20OTHER%20INFORMATION) This section covers additional information not included in the financial statements, such as legal proceedings, exhibits, and official signatures Item 1. Legal Proceedings This section refers to the legal proceedings detailed in Note 14 of the Consolidated Condensed Financial Statements and Item 3 of the Annual Report on Form 10-K - Refers to Note 14 of the financial statements for a description of legal matters[156] Item 6. Exhibits This section provides an index of exhibits filed with the Form 10-Q, including certifications (Sarbanes-Oxley Act Section 302 and 906) and XBRL-related documents - Includes certifications from CEO and CFO under Sarbanes-Oxley Act Sections 302 and 906[159] - Lists various XBRL taxonomy extension documents and the XBRL Instance Document[159] Signatures The report is duly signed on behalf of CONMED Corporation by Todd W. Garner, Executive Vice President and Chief Financial Officer, on July 29, 2021 - Report signed by Todd W. Garner, Executive Vice President and Chief Financial Officer[163] - Date of signature: July 29, 2021[163]