CONMED Corporation (NASDAQ:CNMD) Q4 2014 Earnings Conference Call - Final Transcript

Jan 27, 2015 • 04:30 pm ET


CONMED Corporation (NASDAQ:CNMD) Q4 2014 Earnings Conference Call - Final Transcript


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Good day ladies and gentlemen and welcome to the Q4 2014 CONMED Earnings Conference Call. My name is Steve and I will be your operator for today. At this time, all participants are in a listen-only mode. We will conduct a question-and-answer session towards the end of this conference. (Operator Instructions) As a reminder, this call is being recorded for replay purposes.

I would like to turn the call over to Mr. Bob Yedid of ICR. Please proceed, sir.

Robert Yedid

Good afternoon and thank you for joining the call today. (Forward-looking cautionary statements)

Robert Yedid

refer to certain non-GAAP adjusted measurements during this discussion. While these figures are not a substitute for GAAP measurements, the Company's management uses these figures to aid in monitoring the Company's ongoing financial performance from quarter-to-quarter and year-to-year on a regular basis, and for benchmarking against other medical technology companies. Adjusted net income and adjusted earnings per share measure the income of the Company, excluding credits or charges that are considered by management to be special or outside of the normal ongoing operations of the Company.

These adjusting items are specified in the reconciliation in the press release issued this afternoon. With these required announcements completed, I will turn the call over to Curt Hartman, CONMED's President and Chief Executive Officer for his opening remarks. Curt.

Curt R. Hartman

Thank you, Bob and good afternoon everyone and thank you for joining us for CONMED's fourth quarter earnings call. I'm joined today by Rob Shallish, our Executive Vice President and Chief Financial Officer and Luke Pomilio, Executive Vice President and Controller. As we announced in December Luke will be taking over as our CFO on April 1, upon Rob's retirement. On today's call, I will provide opening remarks and Rob will provide a more detailed review of our quarterly financial results. I'll then ask Luke to provide commentary on our 2015 guidance. We'll then open the call to your questions.

Let me begin today by first pointing everyone to the press release we issued earlier, which provides a summary of our quarterly and full-year financial performance. Looking at our fourth quarter, we are pleased to deliver results that placed our full-year finish at essentially the mid-point of our revised guidance, which represents a first step towards building a culture centered on expectations and accountability throughout the organization.

Total company sales for the fourth quarter of 2014 were a $195 million, a decrease of 4.1% as reported and 2.7% in constant currency versus the same prior year period. GAAP diluted earnings per share were $0.41, an increase of 13.9% versus $0.36 in the fourth quarter of 2013. Adjusted diluted earnings per share for the fourth quarter of 2014 were $0.53, which was flat compared to the fourth quarter of 2013. With these results full-year 2014 sales of $740.1 million were right in the middle of our guidance range. This was the decline from 2013 of 3% on a reported basis and a decline of 2.4% in constant currency.

Full-year 2014 GAAP diluted earnings per