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ConMed
Corp. earnings exceed expectations for second quarter
July
18, 2003
MARRECCA
FIORE
Observer-Dispatch
UTICA -- ConMed Corp. exceeded its expectations
for the second quarter of this year with a sales increase
of 11.9 percent and a net income increase of 13.3 percent,
the company announced Thursday.
"ConMed
has a very strong second quarter with revenue growth
exceeding our projections across almost all product
line," said Joseph Corasanti, president and chief
operating officer of ConMed.
Total
sales for the quarter increased to $124.5 million from
$111.3 million in last year's second quarter. Net income,
excluding financing, acquisition and other charges,
was $10.2 million, up from $9 million in the second
quarter of 2002.
Diluted
earnings per share of 35 cents were up 7 percent, from
33 cents per diluted share in the previous year.
Even
though refinancing and other charges, some of which
were related to its recent acquisitions, ultimately
lowered the company's second quarter net income to $2.8
million or 9 cents per diluted share, one stock analyst
said it was still a good quarter for the medical technology
company.
"It's
good to get that out of the way," said Gregory
McLean, president of Caruso McLean and Co. Inc., of
the refinancing and other charges. "And the fact
that they're doing it and still had a positive (quarter)
is even better. They're integrating it well. It's not
affecting their operations. So, so far, so good."
For
the first six months of 2003, ConMed reported revenues
of $242.6 million, up 8 percent from $224.5 million
in the first half of last year. Net income, excluding
charges and credits, was $20.2 million, or 69 cents
per diluted share for the second quarter, up 10 percent
from $18 million or 68 cents per diluted share a year
earlier. Including certain charges, net income was $17.3
million or 59 cents per diluted share for the second
quarter.
The
stock market was reacting positively to the news of
ConMed's increased earnings and sales, McLean said.
The company's stock closed at $18.53, up 8 cents.
For
certain investors, ConMed represents a good buy, McLean
said.
"I
hesitate to make a blanket recommendation because it
might not be appropriate for some people," McLean
said. "But we think ConMed has significant long-term
growth potential. ... We've followed it for years and
we're impressed with the way they've used their cash
and financed their acquisitions."
Seasonally,
the third quarter is typically ConMed's slowest, Corasanti
said. The company projects sales of between $117 million
and $122 million and diluted earnings per share of 35
to 38 cents.
About
ConMed
- Location:
525 French Road, Utica.
- Number
of employees: 2,500 worldwide; about 1,000 in the
Mohawk Valley.
- On
the Web: www.conmed.com
- Operations:
A leading developer, manufacturer and supplier of
arthroscopic products, electrosurgical systems, powered
instruments, ECG electrodes and other surgical and
patient-care products.
- Stock:
Nasdaq, ticker symbol CNMD.
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