CONMED ANNOUNCES SECOND QUARTER EARNINGS
UTICA, New York, July 22 /PRNewswire/ -- CONMED Corporation (Nasdaq:
CNMD) today announced its financial results for the second quarter of
1997. Earnings per share for the three months ended June 30, 1997
amounted to $.23, which is in line with management's expectations.
This compares with earnings per share of $.28 in the second quarter of
1996.
As previously disclosed, the Company eliminated in June 1997 its
practice of providing financial incentives to certain dealers for the
placement of large stocking orders at the end of the quarter.
Management believes this caused a reduction in sales of approximately
$2 million in the second quarter of 1997 and that sales should return
to normal levels in future periods as dealers utilize regular ordering
patterns rather than relying on end of period purchases to meet
hospital needs.
Sales for the three months ended June 30, 1997 were $30,707,000
compared to $31,790,000 for the same period in 1996. Net income
amounted to $3,473,000 in the second quarter of 1997 while net income
for the same period of 1996 was $4,224,000.
For the six months ended June 30, 1997, net income was $5,933,000
compared to $7,496,000 for the first half of 1996. Earnings per share
were $.39 compared to $.54, and sales were $62,179,000 compared to $60,
990,000 for the respective six month periods of 1997 and 1996.
Included in net income for the first six months of 1997 is a special
charge of $2.3 million ($1.5 million after taxes) taken in the first
quarter of 1997 related to the closing of the Company's Dayton, Ohio
facility. Excluding the special charge, CONMED would have had net
income of $7,423,000 and earnings per share of $.49 in the first six
months of 1997.
Mr. Eugene R. Corasanti, Chief Executive Officer, President and
Chairman of the Board, said, "We are on track with the plan for our
business we outlined three months ago upon release of our previous
quarter's financial information. The sales force integration into one
sales team is developing as we expected. We are on plan for the
consolidation of the Dayton plant into our other facilities, and we
have just completed the acquisition of the Surgical Suction product
line from C.R. Bard. We believe that these developments will enhance
CONMED's earnings in future periods."
CONMED is a manufacturer of electrosurgery, heart monitoring and other
medical products used primarily in hospital operating rooms and other
critical care areas. The Company distributes its product worldwide
from manufacturing and warehousing facilities in Utica and Rome, New
York; Denver, Colorado; El Paso, Texas; and Lawrence, Kansas.
Certain statements contained in this release are forward looking and
may involve risk and uncertainties, including, but not limited to, the
effects of the sales force realignment, product demand resulting from
the elimination of certain end of period dealer incentives, the
consolidation of the Dayton facility, the acquisition of the surgical
suction product line, the impact of competitive products and pricing,
and other risks disclosed in the Company's Securities and Exchange
Commission filings.
CONMED Corporation
Consolidated Statements of Income
(thousands except per share amounts)
(unaudited)
Three months ended Six months ended
June 30, June 28, June 30, June 28,
1997 1996 1997 1996
Net sales $30,707 $31,790 $62,179 $60,990
Cost and expenses:
Cost of sales 16,259 16,505 32,734 31,672
Selling and
administrative 8,596 8,140 16,932 15,696
Facility consolidation
expense -- -- 2,328 --
Research and development 791 694 1,542 1,377
Total operating expenses25,646 25,339 53,536 48,745
Income from operations 5,061 6,451 8,643 12,245
Interest income
(expense), net 366 150 628 (532)
Income before taxes 5,427 6,601 9,271 11,713
Provision for
income taxes 1,954 2,377 3,338 4,217
Net income $3,473 $4,224 $5,933 $7,496
Weighted average common
shares and equivalents 15,193 15,229 15,227 13,805
Earnings per share $0.23 $0.28 $0.39 $0.54
SOURCE CONMED Corporation
-0- 07/22/97 /CONTACT: Robert D. Shallish,
Jr., of CONMED, 315-797-8375, ext. 2219/
(CNMD)
CO: CONMED Corporation ST: New York IN: MTC SU: ERN |
