Financial Data and Key Metrics Changes - Total sales for Q1 2025 were $321.3 million, representing a year-over-year increase of 2.9% as reported and 3.8% in constant currency, slightly better than guidance [7] - Adjusted net income for Q1 was $29.6 million, an increase of 19.6% year-over-year, with adjusted diluted net earnings per share of $0.95, up 20.1% year-over-year [21] - Adjusted gross margin for Q1 was 56.4%, which is 80 basis points higher than the prior year quarter [18] Business Line Data and Key Metrics Changes - Constant currency sales growth in orthopedics was 3.9%, with double-digit growth in foot and ankle products [7] - General surgery sales saw constant currency growth of 3.8%, driven by strong demand for AirSeal and smoke evacuation products [9] - U.S. orthopedic sales decreased by 2.1%, while international orthopedic sales increased by 7.9% [16] Market Data and Key Metrics Changes - U.S. general surgery sales grew by 6.9%, while international general surgery sales decreased by 3.3% due to declines in energy and critical care product lines [16] - The company noted strong demand for its products, particularly in minimally invasive surgery and areas of laparoscopy and arthroscopy [12] Company Strategy and Development Direction - The company is focused on improving supply chain operations and expects to see significant savings from these initiatives, with a target of at least $20 million in annual savings [18] - Management emphasized the importance of clinical differentiation in products like BioBrace and AirSeal, which are expected to drive future growth [8][12] - The company is working on enhancing its supply chain stability and continuity to support future growth [45] Management's Comments on Operating Environment and Future Outlook - Management acknowledged uncertainties in the macroeconomic environment but noted strong demand for their products [11] - The company remains optimistic about its growth drivers and is focused on operational improvements to enhance performance [27] - Management expects revenue growth for the year to be between 4% and 6% in constant currency, with an improved outlook due to currency effects [23][30] Other Important Information - The company received FDA clearance for a new delivery device for rotator cuff repair, which is expected to enhance surgical procedures [8] - Cash flow from operations for Q1 was $41.5 million, compared to $29.1 million in the same quarter of the previous year [22] Q&A Session Summary Question: Guidance and hospital budgets - Management indicated no concerns about softness in hospital budgets and maintained guidance for the year [30] Question: CEO's perspective on surprises - The CEO noted no negative surprises but was positively surprised by the commitment of the ConMed team and customer embrace of their technology [34] Question: Tariff impact and mitigation efforts - Management discussed the impact of tariffs, particularly from China, and outlined mitigation strategies including logistics adjustments and potential price changes [40][42] Question: Supply chain improvement initiatives - Management provided updates on supply chain improvements, focusing on procurement, planning, and production, with positive progress noted in key portfolios [45][49] Question: Growth potential post-supply chain issues - Management expressed confidence in achieving higher growth rates once supply chain issues are resolved, targeting a balanced mix of growth drivers [72][74]

Financial Data and Key Metrics Changes - Total sales for Q1 2025 were $321.3 million, representing a year-over-year increase of 2.9% as reported and 3.8% in constant currency, slightly better than guidance [7] - Adjusted net income for Q1 was $29.6 million, an increase of 19.6% year-over-year, with adjusted diluted net earnings per share of $0.95, up 20.1% year-over-year [22] - Adjusted gross margin for Q1 was 56.4%, which is 80 basis points higher than the prior year quarter [19] Business Line Data and Key Metrics Changes - Constant currency sales growth in orthopedics was 3.9%, with double-digit growth in foot and ankle products [7] - General surgery sales saw constant currency growth of 3.8%, driven by strong demand for AirSeal and smoke evacuation products [10] - U.S. orthopedic sales decreased by 2.1%, while international orthopedic sales increased by 7.9% [16] Market Data and Key Metrics Changes - U.S. general surgery sales grew by 6.9%, while international general surgery sales decreased by 3.3% due to declines in energy and critical care product lines [18] - Total worldwide orthopedic sales grew by 3.9% in Q1 [16] Company Strategy and Development Direction - The company is focused on improving supply chain operations and expects to see significant savings from these initiatives, with a target of at least $20 million in annual savings [19] - The management is optimistic about the long-term future, emphasizing strong growth drivers in minimally invasive surgery and the potential of products like BioBrace and AirSeal [12][14] - The company is working on enhancing its product portfolio and has received FDA clearance for a new delivery device for rotator cuff repair [9] Management's Comments on Operating Environment and Future Outlook - Management noted that demand for products remains strong despite macroeconomic uncertainties, with hospital systems prioritizing key areas of business [12] - The company expects to maintain its revenue guidance for the year, projecting constant currency growth between 4% and 6% [31] - Management expressed confidence in the growth potential of its four key platforms, which are expected to drive double-digit growth [56] Other Important Information - The company has made progress in reducing backordered SKUs, although it acknowledges that there is still work to be done [11] - Cash flow from operations in Q1 was $41.5 million, compared to $29.1 million in the same quarter of the previous year [23] Q&A Session Summary Question: Guidance and hospital budgets - Management indicated no concerns about softness in hospital budgets and maintained a constant currency growth guidance of 4% to 6% for the year [31] Question: CEO's perspective on surprises - The CEO noted no negative surprises but was positively surprised by the commitment of the ConMed team and customer enthusiasm for their technology [34] Question: Tariff impact reconciliation - Management clarified that the majority of previous tariff estimates were related to Mexico, which is now exempt, leaving China as the primary concern [40] Question: Supply chain improvement initiatives - The company is focusing on procurement, production planning, and production processes to enhance supply chain stability and continuity [47] Question: Capital trends and AirSeal utilization - Management reported no significant change in customer appetite for capital expenditures and noted continued adoption of AirSeal in complex procedures [61] Question: Growth potential post-supply chain issues - Management believes that once supply chain issues are resolved, the company could achieve higher growth rates, potentially in the 7% to 9% range [75]