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ConMed reported 4Q19 orthopedic revenue of USD $123.8 million, -0.8% vs. 4Q18, with full-year 2019 revenue of $463.3 million, +3.7% vs. 2018. An aging capital product portfolio and difficult quarterly comparison caused the company’s orthopedics business to backslide in 4Q19. Approximately 30% of ConMed’s orthopedics revenue is generated from capital sales, and leadership noted a weaker than expected 4Q regarding those products.
At the end of January 2020, the company announced organizational changes to its U.S. orthopedics team. To better leverage new orthopedics products in the development pipeline, ConMed is adding sales territories and reassigning some representatives. Management expects these disruptions to “mute” sales in the early part of the year. The company expects total organic revenue growth between 7% and 7.5% for 2020.
“If you think about the capital that is in orthopedics, it is video and the power tools platforms. We’ve had good success in the last couple of years. We had the MicroFree platform, still a very relevant platform that is doing very well, but the other parts of capital in ortho are a little bit aged, and we need to be more competitive there.” – Curt Hartman, ConMed President and CEO
Revenue Data
All revenue data is provided in USD millions unless otherwise noted. Sales and growth rates are estimated on an as-reported basis.
Segment Sales
| 4Q19 | 4Q18 | $ Chg | % Chg | |
|---|---|---|---|---|
| Sports Medicine | $123.8 | $124.8 | ($1.0) | (0.8%) |
| FY19 | FY18 | $ Chg | % Chg | |
|---|---|---|---|---|
| Sports Medicine | $463.3 | $446.7 | $16.6 | 3.7% |
Geographic Sales
| 4Q19 | 4Q18 | $ Chg | % Chg | |
|---|---|---|---|---|
| US | $47.3 | $47.3 | ($0.0) | (0.1%) |
| OUS | $76.5 | $77.5 | ($1.0) | (1.2%) |
| EMEA | $30.8 | $31.2 | ($0.4) | (1.4%) |
| Asia Pacific | $27.6 | $27.8 | ($0.2) | (0.8%) |
| Rest of World | $18.2 | $18.5 | ($0.3) | (1.6%) |
| Total | $123.8 | $124.8 | ($1.0) | (0.8%) |
Earnings
| Earnings | Amt | % of Sales |
|---|---|---|
| Sales | $264.9 | |
| Cost of Sales | ($122.9) | 46.4% |
| Selling and Admin | ($102.0) | 38.5% |
| R&D | ($12.1) | 4.6% |
| Other | ($12.9) | 4.9% |
| Net Earnings | $14.9 | 5.6% |
Mike Evers is ORTHOWORLD’s Digital Content Strategist. He can be reached by email.
ConMed reported 4Q19 orthopedic revenue of USD $123.8 million, -0.8% vs. 4Q18, with full-year 2019 revenue of $463.3 million, +3.7% vs. 2018. An aging capital product portfolio and difficult quarterly comparison caused the company’s orthopedics business to backslide in 4Q19. Approximately 30% of ConMed’s orthopedics revenue is generated...
ConMed reported 4Q19 orthopedic revenue of USD $123.8 million, -0.8% vs. 4Q18, with full-year 2019 revenue of $463.3 million, +3.7% vs. 2018. An aging capital product portfolio and difficult quarterly comparison caused the company’s orthopedics business to backslide in 4Q19. Approximately 30% of ConMed’s orthopedics revenue is generated from capital sales, and leadership noted a weaker than expected 4Q regarding those products.
At the end of January 2020, the company announced organizational changes to its U.S. orthopedics team. To better leverage new orthopedics products in the development pipeline, ConMed is adding sales territories and reassigning some representatives. Management expects these disruptions to “mute” sales in the early part of the year. The company expects total organic revenue growth between 7% and 7.5% for 2020.
“If you think about the capital that is in orthopedics, it is video and the power tools platforms. We’ve had good success in the last couple of years. We had the MicroFree platform, still a very relevant platform that is doing very well, but the other parts of capital in ortho are a little bit aged, and we need to be more competitive there.” – Curt Hartman, ConMed President and CEO
Revenue Data
All revenue data is provided in USD millions unless otherwise noted. Sales and growth rates are estimated on an as-reported basis.
Segment Sales
| 4Q19 | 4Q18 | $ Chg | % Chg | |
|---|---|---|---|---|
| Sports Medicine | $123.8 | $124.8 | ($1.0) | (0.8%) |
| FY19 | FY18 | $ Chg | % Chg | |
|---|---|---|---|---|
| Sports Medicine | $463.3 | $446.7 | $16.6 | 3.7% |
Geographic Sales
| 4Q19 | 4Q18 | $ Chg | % Chg | |
|---|---|---|---|---|
| US | $47.3 | $47.3 | ($0.0) | (0.1%) |
| OUS | $76.5 | $77.5 | ($1.0) | (1.2%) |
| EMEA | $30.8 | $31.2 | ($0.4) | (1.4%) |
| Asia Pacific | $27.6 | $27.8 | ($0.2) | (0.8%) |
| Rest of World | $18.2 | $18.5 | ($0.3) | (1.6%) |
| Total | $123.8 | $124.8 | ($1.0) | (0.8%) |
Earnings
| Earnings | Amt | % of Sales |
|---|---|---|
| Sales | $264.9 | |
| Cost of Sales | ($122.9) | 46.4% |
| Selling and Admin | ($102.0) | 38.5% |
| R&D | ($12.1) | 4.6% |
| Other | ($12.9) | 4.9% |
| Net Earnings | $14.9 | 5.6% |
Mike Evers is ORTHOWORLD’s Digital Content Strategist. He can be reached by email.
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Mike Evers is a Senior Market Analyst and writer with over 15 years of experience in the medical industry, spanning cardiac rhythm management, ER coding and billing, and orthopedics. He joined ORTHOWORLD in 2018, where he provides market analysis and editorial coverage.
