CONMED Corporation (NASDAQ:CNMD) Q1 2018 Earnings Conference Call - Preliminary Transcript

Apr 25, 2018 • 04:30 pm ET


CONMED Corporation (NASDAQ:CNMD) Q1 2018 Earnings Conference Call - Preliminary Transcript


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Good afternoon, everyone. Before we begin, let me remind you that during this call management will be making comments and statements regarding its financial outlook, which represent forward-looking statements that involve risks and uncertainties as those terms are defined under the federal securities laws.

The company's actual results may differ materially from its current expectations. Please refer to the risk factors and other cautionary factors in today's press release as well as the company's SEC filings for more details on factors that may cause actual results to differ materially.

You will also hear management refer to certain non-GAAP adjusted measurements during this discussion. While these figures are not a substitute for GAAP measurements, management will use 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 for charges that are considered by the company to be special or outside of its normal ongoing operations. 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 Hartmann, CONMED's President and Chief Executive Officer, for opening remarks.

Curt R. Hartman

Thank you, Jonathan. Good afternoon and thank you for joining us for CONMED's first quarter 2018 earnings call. With me on the call is Todd Garner, Executive Vice President and Chief Financial Officer. Today, I'll provide a brief overview of the financial and operating highlights for the quarter. Todd will then provide a more detailed analysis of our financial performance and discuss our 2018 financial guidance. After that, we'll open the call to your questions.

As we outlined in our press release, we had a very strong start to the year. Our people and new products continue to make a difference for CONMED in the markets we serve. And our adjusted EBITDA growth in the quarter confirms our commitment and ability to drive profitable growth going forward.All of this gives us the confidence to increase our top and bottom line outlook for 2018, which Todd will discuss in more detail later in the call.

Our total sales for the first quarter were $202.1 million, representing an increase of 8.3% as reported and 6.8% in constant currency and as adjusted for the new revenue accounting standard when compared to the first quarter of 2017. This growth was driven by broad-based strength across both of our categories on a global basis. From an earnings perspective during the first quarter, our adjusted net earnings of $15.1 million increased 42.7% year-over-year, and adjusted diluted net earnings per share of $0.53 increased 39.5% year-over-year.

Now, let me update you on a few non-financial highlights from the quarter. First, we were very pleased to receive the de novo FDA approval of thoracic indication for AirSeal. This is the first ever approval of an access management platform for MIS procedures in the thoracic