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Product / Company Performance

ConMed reports 4Q18 orthopaedic revenue of $124.8MM, +3.1% vs. 4Q17 -

By Mike Evers, ORTHOWORLD

ConMed posted 4Q18 orthopaedic revenue of $124.8MM, +3.1% vs. 4Q17, with full year 2018 revenue of $446.7MM, +4.1% vs. 2017. Orthopaedics performed well, especially in domestic markets, going against some of the toughest quarterly comps the company has faced to-date. This marks the fifth consecutive quarter of growth for the orthopaedic segment.

Per ConMed President and CEO Curt Hartman, there is no secret to the company’s success and momentum. “Great new product cadence across the board, better sales people, better marketing people, better engagement with customers; it’s candidly no more complicated than that,” he said. The gains from ConMed’s overachievement in 2018 were largely reinvested to address infrastructure holes, and therefore did not make it to the bottom line. Leadership said they are not carrying that same approach into 2019.

In the coming year the company will look to increase profitability and focus on launching new products. Per leadership, the pipeline will be “much larger and more differentiated than ConMed has seen in the past.” Few new product details were offered outside of it being a strong year for orthopaedics in the first half, with AAOS to be a key venue for some of the new releases. Hartman said, “I would just encourage everybody on the call to show up at Academy. I think it’s going to be our best one certainly since I’ve been here, in terms of the breadth of the offering and the totality of the systems that we plan to put out in the marketplace.”

The company expects full-year 2019 constant-currency sales growth in the range of 5.0% to 6.0%.

ConMed’s segment sales and growth on an as-reported basis are as follows.

  4Q18 4Q17 $ Change % Change
Arthroscopy / Soft Tissue Repair $124.8 $121.0 $3.8 3.1%
  FY18 FY17 $ Change % Change
Arthroscopy / Soft Tissue Repair $446.7 $429.0 $17.7 4.1%

Net earnings for 4Q18 are as follows, inclusive of all ConMed revenue.

4Q18 Amount ($MM) % of Sales
Sales $242.4  
   Cost of Sales -$109.8 45.3%
   Selling and Admin -$96.5 39.8%
   R&D -$10.4 4.3%
   Other -$10.2 4.2%
Net Earnings  $15.7 6.5%

Sources: ConMed. All revenue figures presented in USD $MM unless otherwise noted.

Mike Evers is ORTHOWORLD’s Market Analyst. He can be reached by email.

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