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ConMed reported 2Q20 orthopedic revenue of USD $60.5 million, -47.8% vs. 2Q19. While monthly trends improved throughout the second quarter for the company, ConMed’s sports medicine franchise remains under significant pressure. Its leadership remains optimistic that positive trajectories seen in July will continue. However, they believe rising unemployment rates could depress surgical volumes to levels seen in 2009 through 2011. ConMed’s procedure volumes are unlikely to recover in 2020 fully.
The company could not determine its remaining procedure backlog. While some of its customers have completed backlogged surgeries, others are continuing to work through them. Additionally, leadership does not see the accelerating trend in ASC procedures having a meaningful impact on ConMed’s sports medicine business. Over 70% of its sports medicine procedures are already performed in outpatient settings, and it is unlikely more would shift into that setting.
“We haven’t heard customers say capital is shut off. What we’re hearing from customers is now is not the time to be evaluating capital technology, and we’ve got a lot of other priorities right now. We need to get back into surgery. We need to get revenue-generating procedures back into the facilities. So we’re not pushing hard on capital. It’s just not what our customers want to hear from us right now.” – 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
| 1Q20 | 1Q19 | $ Chg | % Chg | |
|---|---|---|---|---|
| Sports Medicine | $60.5 | $115.8 | ($55.3) | (47.8%) |
| 1H20 | 1H19 | $ Chg | % Chg | |
|---|---|---|---|---|
| Sports Medicine | $159.8 | $229.2 | ($69.4) | (30.3%) |
Geographic Sales
| 1Q20 | 1Q19 | $ Chg | % Chg | |
|---|---|---|---|---|
| US | $21.4 | $43.3 | ($21.9) | (50.6%) |
| OUS | $39.1 | $72.4 | ($33.3) | (46%) |
| EMEA | $13.7 | $31.1 | ($17.4) | (55.9%) |
| Asia Pacific | $19.8 | $25.5 | ($5.7) | (22.5%) |
| Rest of World | $5.6 | $15.8 | ($10.2) | (64.6%) |
| Total | $60.5 | $115.8 | ($55.3) | (47.8%) |
| 1H20 | 1H19 | $ Chg | % Chg | |
|---|---|---|---|---|
| US | $58.4 | $88.6 | ($30.2) | (34%) |
| OUS | $101.3 | $140.6 | ($39.3) | (27.9%) |
| EMEA | $39.6 | $61.5 | ($21.9) | (35.6%) |
| Asia Pacific | $40.3 | $48.3 | ($7.9) | (16.5%) |
| Rest of World | $21.4 | $30.8 | ($9.4) | (30.6%) |
| Total | $159.8 | $229.2 | ($69.4) | (30.3%) |
Earnings
| Amt | % of Sales | |
|---|---|---|
| Sales | $157.8 | |
| Cost of Sales | $85.9 | 54.4% |
| Selling and Admin | $84.5 | 53.5% |
| R&D | $8.7 | 5.5% |
| Other | $6.2 | 3.9% |
| Net Earnings | ($27.4) | (17.4%) |
Mike Evers is ORTHOWORLD’s Digital Content Strategist. He can be reached by email.
ConMed reported 2Q20 orthopedic revenue of USD $60.5 million, -47.8% vs. 2Q19. While monthly trends improved throughout the second quarter for the company, ConMed's sports medicine franchise remains under significant pressure. Its leadership remains optimistic that positive trajectories seen in July will continue. However, they believe...
ConMed reported 2Q20 orthopedic revenue of USD $60.5 million, -47.8% vs. 2Q19. While monthly trends improved throughout the second quarter for the company, ConMed’s sports medicine franchise remains under significant pressure. Its leadership remains optimistic that positive trajectories seen in July will continue. However, they believe rising unemployment rates could depress surgical volumes to levels seen in 2009 through 2011. ConMed’s procedure volumes are unlikely to recover in 2020 fully.
The company could not determine its remaining procedure backlog. While some of its customers have completed backlogged surgeries, others are continuing to work through them. Additionally, leadership does not see the accelerating trend in ASC procedures having a meaningful impact on ConMed’s sports medicine business. Over 70% of its sports medicine procedures are already performed in outpatient settings, and it is unlikely more would shift into that setting.
“We haven’t heard customers say capital is shut off. What we’re hearing from customers is now is not the time to be evaluating capital technology, and we’ve got a lot of other priorities right now. We need to get back into surgery. We need to get revenue-generating procedures back into the facilities. So we’re not pushing hard on capital. It’s just not what our customers want to hear from us right now.” – 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
| 1Q20 | 1Q19 | $ Chg | % Chg | |
|---|---|---|---|---|
| Sports Medicine | $60.5 | $115.8 | ($55.3) | (47.8%) |
| 1H20 | 1H19 | $ Chg | % Chg | |
|---|---|---|---|---|
| Sports Medicine | $159.8 | $229.2 | ($69.4) | (30.3%) |
Geographic Sales
| 1Q20 | 1Q19 | $ Chg | % Chg | |
|---|---|---|---|---|
| US | $21.4 | $43.3 | ($21.9) | (50.6%) |
| OUS | $39.1 | $72.4 | ($33.3) | (46%) |
| EMEA | $13.7 | $31.1 | ($17.4) | (55.9%) |
| Asia Pacific | $19.8 | $25.5 | ($5.7) | (22.5%) |
| Rest of World | $5.6 | $15.8 | ($10.2) | (64.6%) |
| Total | $60.5 | $115.8 | ($55.3) | (47.8%) |
| 1H20 | 1H19 | $ Chg | % Chg | |
|---|---|---|---|---|
| US | $58.4 | $88.6 | ($30.2) | (34%) |
| OUS | $101.3 | $140.6 | ($39.3) | (27.9%) |
| EMEA | $39.6 | $61.5 | ($21.9) | (35.6%) |
| Asia Pacific | $40.3 | $48.3 | ($7.9) | (16.5%) |
| Rest of World | $21.4 | $30.8 | ($9.4) | (30.6%) |
| Total | $159.8 | $229.2 | ($69.4) | (30.3%) |
Earnings
| Amt | % of Sales | |
|---|---|---|
| Sales | $157.8 | |
| Cost of Sales | $85.9 | 54.4% |
| Selling and Admin | $84.5 | 53.5% |
| R&D | $8.7 | 5.5% |
| Other | $6.2 | 3.9% |
| Net Earnings | ($27.4) | (17.4%) |
Mike Evers is ORTHOWORLD’s Digital Content Strategist. He can be reached by email.
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ME
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.
