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Share Name | Share Symbol | Market | Type |
---|---|---|---|
CONMED Corporation | NASDAQ:CNMD | NASDAQ | Common Stock |
Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
---|---|---|---|---|---|---|---|---|---|---|
0.00 | 0.00% | 101.41 | 100.00 | 106.01 | 0 | 01:00:00 |
For the quarterly period ended
|
Commission File Number
|
June 30, 2019
|
0-16093
|
New York
|
16-0977505
|
||
(State or other jurisdiction of incorporation or organization)
|
(I.R.S. Employer Identification No.)
|
||
|
|
|
|
525 French Road
|
Utica,
|
New York
|
13502
|
(Address of principal executive offices)
|
(Zip Code)
|
Title of each class
|
Trading Symbol
|
Name of each exchange on which registered
|
Common Stock, $0.01 par value
|
CNMD
|
NASDAQ
|
PART I FINANCIAL INFORMATION
|
||
Item Number
|
|
Page
|
|
|
|
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||
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|
|
|
PART II OTHER INFORMATION
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
Six Months Ended
|
||||||||||||
|
June 30,
|
|
June 30,
|
||||||||||||
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
Net sales
|
$
|
238,263
|
|
|
$
|
212,820
|
|
|
$
|
456,641
|
|
|
$
|
414,884
|
|
|
|
|
|
|
|
|
|
||||||||
Cost of sales
|
107,073
|
|
|
96,549
|
|
|
204,013
|
|
|
189,056
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Gross profit
|
131,190
|
|
|
116,271
|
|
|
252,628
|
|
|
225,828
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Selling and administrative expense
|
100,726
|
|
|
89,604
|
|
|
199,952
|
|
|
174,172
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Research and development expense
|
11,806
|
|
|
9,985
|
|
|
22,381
|
|
|
17,696
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Operating expenses
|
112,532
|
|
|
99,589
|
|
|
222,333
|
|
|
191,868
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Income from operations
|
18,658
|
|
|
16,682
|
|
|
30,295
|
|
|
33,960
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Other expense
|
321
|
|
|
—
|
|
|
4,546
|
|
|
—
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Interest expense
|
11,839
|
|
|
5,091
|
|
|
21,208
|
|
|
9,909
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Income before income taxes
|
6,498
|
|
|
11,591
|
|
|
4,541
|
|
|
24,051
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Provision (benefit) for income taxes
|
803
|
|
|
2,872
|
|
|
(2,175
|
)
|
|
4,675
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Net income
|
$
|
5,695
|
|
|
$
|
8,719
|
|
|
$
|
6,716
|
|
|
$
|
19,376
|
|
|
|
|
|
|
|
|
|
||||||||
Comprehensive income
|
$
|
5,751
|
|
|
$
|
7,307
|
|
|
$
|
6,847
|
|
|
$
|
20,709
|
|
|
|
|
|
|
|
|
|
||||||||
|
|
|
|
|
|
|
|
||||||||
Per share data:
|
|
|
|
|
|
|
|
|
|||||||
|
|
|
|
|
|
|
|
||||||||
Net income
|
|
|
|
|
|
|
|
|
|||||||
Basic
|
$
|
0.20
|
|
|
$
|
0.31
|
|
|
$
|
0.24
|
|
|
$
|
0.69
|
|
Diluted
|
0.19
|
|
|
0.30
|
|
|
0.23
|
|
|
0.67
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Weighted average common shares
|
|
|
|
|
|
|
|
|
|||||||
Basic
|
28,276
|
|
|
28,075
|
|
|
28,228
|
|
|
28,059
|
|
||||
Diluted
|
29,337
|
|
|
28,846
|
|
|
29,197
|
|
|
28,739
|
|
|
Common Stock
|
Paid-in
Capital
|
Retained
Earnings
|
Accumulated
Other
Comprehensive
Loss
|
Treasury
Stock
|
Shareholders’
Equity
|
||||||||||||||
|
Shares
|
Amount
|
||||||||||||||||||
Balance at December 31, 2018
|
31,299
|
|
$
|
313
|
|
$
|
341,738
|
|
$
|
464,851
|
|
$
|
(55,737
|
)
|
$
|
(88,895
|
)
|
$
|
662,270
|
|
Common stock issued under employee plans
|
|
|
|
|
(769
|
)
|
|
|
|
2,517
|
|
1,748
|
|
|||||||
Stock-based compensation
|
|
|
|
|
2,703
|
|
|
|
|
|
|
|
2,703
|
|
||||||
Dividends on common stock ($0.20 per share)
|
|
|
|
(5,643
|
)
|
|
|
(5,643
|
)
|
|||||||||||
Convertible note discount (net of income tax expense of $12,470)
|
|
|
39,145
|
|
|
|
|
39,145
|
|
|||||||||||
Convertible note hedge, (net of income tax benefit of $12,369)
|
|
|
(38,829
|
)
|
|
|
|
(38,829
|
)
|
|||||||||||
Issuance of warrants
|
|
|
30,567
|
|
|
|
|
30,567
|
|
|||||||||||
Comprehensive income (loss):
|
|
|
|
|
|
|
|
|
||||||||||||
Foreign currency translation adjustments
|
|
|
|
|
(578
|
)
|
|
|
||||||||||||
Pension liability (net of income tax expense of $173)
|
|
|
|
|
547
|
|
|
|
||||||||||||
Cash flow hedging gain (net of income tax expense of $34)
|
|
|
|
|
106
|
|
|
|
||||||||||||
Net income
|
|
|
|
1,021
|
|
|
|
|
||||||||||||
Total comprehensive income
|
|
|
|
|
|
|
1,096
|
|
||||||||||||
Balance at March 31, 2019
|
31,299
|
|
$
|
313
|
|
$
|
374,555
|
|
$
|
460,229
|
|
$
|
(55,662
|
)
|
$
|
(86,378
|
)
|
$
|
693,057
|
|
Common stock issued under employee plans
|
|
|
(1,144
|
)
|
|
|
1,894
|
|
750
|
|
||||||||||
Stock-based compensation
|
|
|
3,108
|
|
|
|
|
3,108
|
|
|||||||||||
Dividends on common stock ($0.20 per share)
|
|
|
|
(5,657
|
)
|
|
|
(5,657
|
)
|
|||||||||||
Comprehensive income (loss):
|
|
|
|
|
|
|
|
|||||||||||||
Foreign currency translation adjustments
|
|
|
|
|
1,108
|
|
|
|
||||||||||||
Pension liability (net of income tax expense of $174)
|
|
|
|
|
546
|
|
|
|
||||||||||||
Cash flow hedging loss (net of income tax benefit of $509)
|
|
|
|
|
(1,598
|
)
|
|
|
||||||||||||
Net income
|
|
|
|
5,695
|
|
|
|
|
||||||||||||
Total comprehensive income
|
|
|
|
|
|
|
5,751
|
|
||||||||||||
Balance at June 30, 2019
|
31,299
|
|
$
|
313
|
|
$
|
376,519
|
|
$
|
460,267
|
|
$
|
(55,606
|
)
|
$
|
(84,484
|
)
|
$
|
697,009
|
|
|
Common Stock
|
Paid-in
Capital
|
Retained
Earnings
|
Accumulated
Other
Comprehensive
Loss
|
Treasury
Stock
|
Shareholders’
Equity
|
||||||||||||||
|
Shares
|
Amount
|
||||||||||||||||||
Balance at December 31, 2017
|
31,299
|
|
$
|
313
|
|
$
|
333,795
|
|
$
|
440,085
|
|
$
|
(49,078
|
)
|
$
|
(93,683
|
)
|
$
|
631,432
|
|
Common stock issued under employee plans
|
|
|
|
|
(1,344
|
)
|
|
|
|
2,001
|
|
657
|
|
|||||||
Stock-based compensation
|
|
|
|
|
2,303
|
|
|
|
|
|
|
|
2,303
|
|
||||||
Dividends on common stock ($0.20 per share)
|
|
|
|
(5,606
|
)
|
|
|
(5,606
|
)
|
|||||||||||
Comprehensive income:
|
|
|
|
|
|
|
|
|
||||||||||||
Foreign currency translation adjustments
|
|
|
|
|
649
|
|
|
|
||||||||||||
Pension liability (net of income tax expense of $162)
|
|
|
|
|
510
|
|
|
|
||||||||||||
Cash flow hedging gain (net of income tax expense of $505)
|
|
|
|
|
1,586
|
|
|
|
||||||||||||
Net income
|
|
|
|
10,657
|
|
|
|
|
||||||||||||
Total comprehensive income
|
|
|
|
|
|
|
13,402
|
|
||||||||||||
Cumulative effect of change in accounting principle
(1)
|
|
|
|
440
|
|
|
|
440
|
|
|||||||||||
Balance at March 31, 2018
|
31,299
|
|
$
|
313
|
|
$
|
334,754
|
|
$
|
445,576
|
|
$
|
(46,333
|
)
|
$
|
(91,682
|
)
|
$
|
642,628
|
|
Common stock issued under employee plans
|
|
|
|
|
(844
|
)
|
|
|
|
2,071
|
|
1,227
|
|
|||||||
Stock-based compensation
|
|
|
|
|
2,650
|
|
|
|
|
|
|
|
2,650
|
|
||||||
Dividends on common stock ($0.20 per share)
|
|
|
|
(5,620
|
)
|
|
|
(5,620
|
)
|
|||||||||||
Comprehensive income (loss):
|
|
|
|
|
|
|
|
|
||||||||||||
Foreign currency translation adjustments
|
|
|
|
|
(5,749
|
)
|
|
|
|
|||||||||||
Pension liability (net of income tax expense of $162)
|
|
|
|
|
510
|
|
|
|
||||||||||||
Cash flow hedging gain (net of income tax expense of $1,219)
|
|
|
|
|
3,827
|
|
|
|
||||||||||||
Net income
|
|
|
|
8,719
|
|
|
|
|
||||||||||||
Total comprehensive income
|
|
|
|
|
|
|
7,307
|
|
||||||||||||
Balance at June 30, 2018
|
31,299
|
|
$
|
313
|
|
$
|
336,560
|
|
$
|
448,675
|
|
$
|
(47,745
|
)
|
$
|
(89,611
|
)
|
$
|
648,192
|
|
|
Six Months Ended
|
||||||
|
June 30,
|
||||||
|
2019
|
|
2018
|
||||
Cash flows from operating activities:
|
|
|
|
||||
Net income
|
$
|
6,716
|
|
|
$
|
19,376
|
|
Adjustments to reconcile net income to net cash provided by operating activities:
|
|
|
|
|
|||
Depreciation
|
8,967
|
|
|
9,006
|
|
||
Amortization of debt discount
|
3,774
|
|
|
—
|
|
||
Amortization
|
27,076
|
|
|
21,492
|
|
||
Stock-based compensation
|
5,811
|
|
|
4,953
|
|
||
Deferred income taxes
|
(6,254
|
)
|
|
118
|
|
||
Loss on early extinguishment of debt
|
300
|
|
|
—
|
|
||
Increase (decrease) in cash flows from changes in assets and liabilities:
|
|
|
|
|
|
||
Accounts receivable
|
6,935
|
|
|
3,506
|
|
||
Inventories
|
(13,809
|
)
|
|
(3,014
|
)
|
||
Accounts payable
|
(5,078
|
)
|
|
9,981
|
|
||
Accrued compensation and benefits
|
(6,979
|
)
|
|
(2,371
|
)
|
||
Other assets
|
(13,939
|
)
|
|
(16,306
|
)
|
||
Other liabilities
|
4,137
|
|
|
(1,094
|
)
|
||
|
10,941
|
|
|
26,271
|
|
||
Net cash provided by operating activities
|
17,657
|
|
|
45,647
|
|
||
|
|
|
|
||||
Cash flows from investing activities:
|
|
|
|
|
|||
Purchases of property, plant and equipment
|
(9,006
|
)
|
|
(7,291
|
)
|
||
Payments related to business acquisition, net of cash acquired
|
(364,928
|
)
|
|
—
|
|
||
Net cash used in investing activities
|
(373,934
|
)
|
|
(7,291
|
)
|
||
|
|
|
|
||||
Cash flows from financing activities:
|
|
|
|
|
|||
Payments on term loan
|
(147,688
|
)
|
|
(6,563
|
)
|
||
Proceeds from term loan
|
265,000
|
|
|
—
|
|
||
Payments on revolving line of credit
|
(393,000
|
)
|
|
(87,000
|
)
|
||
Proceeds from revolving line of credit
|
343,000
|
|
|
57,000
|
|
||
Proceeds from convertible notes
|
345,000
|
|
|
—
|
|
||
Payments related to contingent consideration
|
(4,405
|
)
|
|
—
|
|
||
Payments related to debt issuance costs
|
(16,210
|
)
|
|
—
|
|
||
Dividends paid on common stock
|
(11,269
|
)
|
|
(11,198
|
)
|
||
Purchases of convertible hedges
|
(51,198
|
)
|
|
—
|
|
||
Proceeds from issuance of warrants
|
30,567
|
|
|
—
|
|
||
Other, net
|
1,482
|
|
|
684
|
|
||
Net cash provided by (used in) financing activities
|
361,279
|
|
|
(47,077
|
)
|
||
|
|
|
|
||||
Effect of exchange rate changes on cash and cash equivalents
|
36
|
|
|
(500
|
)
|
||
|
|
|
|
||||
Net increase (decrease) in cash and cash equivalents
|
5,038
|
|
|
(9,221
|
)
|
||
|
|
|
|
||||
Cash and cash equivalents at beginning of period
|
17,511
|
|
|
32,622
|
|
||
|
|
|
|
||||
Cash and cash equivalents at end of period
|
$
|
22,549
|
|
|
$
|
23,401
|
|
|
|
|
|
||||
Non-cash investing and financing activities:
|
|
|
|
||||
Contractual obligations from asset acquisition
|
$
|
—
|
|
|
$
|
25,849
|
|
Dividends payable
|
$
|
5,657
|
|
|
$
|
5,620
|
|
Cash
|
$
|
119
|
|
Other current assets
|
9,315
|
|
|
Current assets
|
9,434
|
|
|
Property, plant & equipment
|
4,036
|
|
|
Deferred income taxes
|
80
|
|
|
Goodwill
|
215,793
|
|
|
Customer relationships
|
124,000
|
|
|
Developed technology
|
9,000
|
|
|
Trademarks & tradenames
|
7,000
|
|
|
Other non-current assets
|
166
|
|
|
Total assets acquired
|
$
|
369,509
|
|
|
|
||
Current liabilities assumed
|
4,462
|
|
|
Total liabilities assumed
|
4,462
|
|
|
Net assets acquired
|
$
|
365,047
|
|
|
Three Months Ended June 30,
|
|
Six Months Ended June 30,
|
||||||||||||
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
Net sales
|
$
|
238,263
|
|
|
$
|
222,407
|
|
|
$
|
461,660
|
|
|
$
|
433,680
|
|
Net income (loss)
|
8,625
|
|
|
1,890
|
|
|
17,370
|
|
|
(1,319
|
)
|
|
Three Months Ended
|
|
Three Months Ended
|
||||||||||||||||||||
|
June 30, 2019
|
|
June 30, 2018
|
||||||||||||||||||||
|
Orthopedic Surgery
|
|
General Surgery
|
|
Total
|
|
Orthopedic Surgery
|
|
General Surgery
|
|
Total
|
||||||||||||
Primary Geographic Markets
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
United States
|
$
|
43,335
|
|
|
$
|
85,601
|
|
|
$
|
128,936
|
|
|
$
|
41,057
|
|
|
$
|
68,599
|
|
|
$
|
109,656
|
|
Americas (excluding the United States)
|
15,781
|
|
|
7,823
|
|
|
23,604
|
|
|
16,586
|
|
|
8,348
|
|
|
24,934
|
|
||||||
Europe, Middle East & Africa
|
31,099
|
|
|
15,763
|
|
|
46,862
|
|
|
29,443
|
|
|
13,944
|
|
|
43,387
|
|
||||||
Asia Pacific
|
25,542
|
|
|
13,319
|
|
|
38,861
|
|
|
23,045
|
|
|
11,798
|
|
|
34,843
|
|
||||||
Total sales from contracts with customers
|
$
|
115,757
|
|
|
$
|
122,506
|
|
|
$
|
238,263
|
|
|
$
|
110,131
|
|
|
$
|
102,689
|
|
|
$
|
212,820
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Timing of Revenue Recognition
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Goods transferred at a point in time
|
$
|
106,772
|
|
|
$
|
121,927
|
|
|
$
|
228,699
|
|
|
$
|
101,663
|
|
|
$
|
102,323
|
|
|
$
|
203,986
|
|
Services transferred over time
|
8,985
|
|
|
579
|
|
|
9,564
|
|
|
8,468
|
|
|
366
|
|
|
8,834
|
|
||||||
Total sales from contracts with customers
|
$
|
115,757
|
|
|
$
|
122,506
|
|
|
$
|
238,263
|
|
|
$
|
110,131
|
|
|
$
|
102,689
|
|
|
$
|
212,820
|
|
|
Six Months Ended
|
|
Six Months Ended
|
||||||||||||||||||||
|
June 30, 2019
|
|
June 30, 2018
|
||||||||||||||||||||
|
Orthopedic Surgery
|
|
General Surgery
|
|
Total
|
|
Orthopedic Surgery
|
|
General Surgery
|
|
Total
|
||||||||||||
Primary Geographic Markets
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
United States
|
$
|
88,590
|
|
|
$
|
157,371
|
|
|
$
|
245,961
|
|
|
$
|
84,209
|
|
|
$
|
131,698
|
|
|
$
|
215,907
|
|
Americas (excluding the United States)
|
30,823
|
|
|
15,286
|
|
|
46,109
|
|
|
33,357
|
|
|
16,027
|
|
|
49,384
|
|
||||||
Europe, Middle East & Africa
|
61,505
|
|
|
31,688
|
|
|
93,193
|
|
|
57,745
|
|
|
26,928
|
|
|
84,673
|
|
||||||
Asia Pacific
|
48,276
|
|
|
23,102
|
|
|
71,378
|
|
|
43,683
|
|
|
21,237
|
|
|
64,920
|
|
||||||
Total sales from contracts with customers
|
$
|
229,194
|
|
|
$
|
227,447
|
|
|
$
|
456,641
|
|
|
$
|
218,994
|
|
|
$
|
195,890
|
|
|
$
|
414,884
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Timing of Revenue Recognition
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Goods transferred at a point in time
|
$
|
211,511
|
|
|
$
|
226,351
|
|
|
$
|
437,862
|
|
|
$
|
202,455
|
|
|
$
|
195,204
|
|
|
$
|
397,659
|
|
Services transferred over time
|
17,683
|
|
|
1,096
|
|
|
18,779
|
|
|
16,539
|
|
|
686
|
|
|
17,225
|
|
||||||
Total sales from contracts with customers
|
$
|
229,194
|
|
|
$
|
227,447
|
|
|
$
|
456,641
|
|
|
$
|
218,994
|
|
|
$
|
195,890
|
|
|
$
|
414,884
|
|
|
June 30, 2019
|
|
December 31, 2018
|
||||
|
|
|
|
||||
Contract liability
|
$
|
12,574
|
|
|
$
|
11,043
|
|
|
Three Months Ended June 30,
|
|
Six Months Ended June 30,
|
||||||||||||
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
Net income
|
$
|
5,695
|
|
|
$
|
8,719
|
|
|
$
|
6,716
|
|
|
$
|
19,376
|
|
|
|
|
|
|
|
|
|
||||||||
Other comprehensive income (loss):
|
|
|
|
|
|
|
|
||||||||
Pension liability, net of income tax (income tax expense of $174 and $162 for the three months ended June 30, 2019 and 2018, respectively, and $347 and $324 for the six months ended June 30, 2019 and 2018, respectively)
|
546
|
|
|
510
|
|
|
1,093
|
|
|
1,020
|
|
||||
Cash flow hedging gain (loss), net of income tax (income tax expense (benefit) of ($509) and $1,219 for the three months ended June 30, 2019 and 2018, respectively, and ($475) and $1,724 for the six months ended June 30, 2019 and 2018, respectively)
|
(1,598
|
)
|
|
3,827
|
|
|
(1,492
|
)
|
|
5,413
|
|
||||
Foreign currency translation adjustment
|
1,108
|
|
|
(5,749
|
)
|
|
530
|
|
|
(5,100
|
)
|
||||
|
|
|
|
|
|
|
|
||||||||
Comprehensive income
|
$
|
5,751
|
|
|
$
|
7,307
|
|
|
$
|
6,847
|
|
|
$
|
20,709
|
|
|
Cash Flow
Hedging
Gain (Loss)
|
|
Pension
Liability
|
|
Cumulative
Translation
Adjustments
|
|
Accumulated
Other
Comprehensive
Income (Loss)
|
||||||||
Balance, December 31, 2018
|
$
|
4,085
|
|
|
$
|
(31,718
|
)
|
|
$
|
(28,104
|
)
|
|
$
|
(55,737
|
)
|
|
|
|
|
|
|
|
|
||||||||
Other comprehensive income (loss) before reclassifications, net of tax
|
1,414
|
|
|
—
|
|
|
530
|
|
|
1,944
|
|
||||
Amounts reclassified from accumulated other comprehensive income (loss) before tax
a
|
(3,832
|
)
|
|
1,440
|
|
|
—
|
|
|
(2,392
|
)
|
||||
Income tax
|
926
|
|
|
(347
|
)
|
|
—
|
|
|
579
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Net current-period other comprehensive income (loss)
|
(1,492
|
)
|
|
1,093
|
|
|
530
|
|
|
131
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Balance, June 30, 2019
|
$
|
2,593
|
|
|
$
|
(30,625
|
)
|
|
$
|
(27,574
|
)
|
|
$
|
(55,606
|
)
|
|
Cash Flow
Hedging
Gain (Loss)
|
|
Pension
Liability
|
|
Cumulative
Translation
Adjustments
|
|
Accumulated
Other
Comprehensive
Income (Loss)
|
||||||||
Balance, December 31, 2017
|
$
|
(3,530
|
)
|
|
$
|
(25,813
|
)
|
|
$
|
(19,735
|
)
|
|
$
|
(49,078
|
)
|
|
|
|
|
|
|
|
|
||||||||
Other comprehensive income (loss) before reclassifications, net of tax
|
4,165
|
|
|
—
|
|
|
(5,100
|
)
|
|
(935
|
)
|
||||
Amounts reclassified from accumulated other comprehensive income (loss) before tax
a
|
1,645
|
|
|
1,344
|
|
|
—
|
|
|
2,989
|
|
||||
Income tax
|
(397
|
)
|
|
(324
|
)
|
|
—
|
|
|
(721
|
)
|
||||
|
|
|
|
|
|
|
|
||||||||
Net current-period other comprehensive income (loss)
|
5,413
|
|
|
1,020
|
|
|
(5,100
|
)
|
|
1,333
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Balance, June 30, 2018
|
$
|
1,883
|
|
|
$
|
(24,793
|
)
|
|
$
|
(24,835
|
)
|
|
$
|
(47,745
|
)
|
|
|
|
As of
|
||||||
|
FASB ASC Topic 815 Designation
|
|
June 30, 2019
|
|
December 31, 2018
|
||||
Forward exchange contracts
|
Cash flow hedge
|
|
$
|
153,454
|
|
|
$
|
155,313
|
|
Forward exchange contracts
|
Non-designated
|
|
39,762
|
|
|
39,631
|
|
|
|
Amount of Gain (Loss) Recognized in AOCI
|
|
Consolidated Condensed Statements of Comprehensive Income
|
|
Amount of Gain (Loss) Reclassified from AOCI
|
|||||||||||||||||||
|
|
Three Months Ended June 30,
|
|
|
|
Three Months Ended June 30,
|
Three Months Ended June 30,
|
||||||||||||||||||
|
|
|
|
|
|
|
|
Total Amount of Line Item Presented
|
|
|
|
|
|||||||||||||
Derivative Instrument
|
|
2019
|
|
2018
|
|
Location of amount reclassified
|
|
2019
|
2018
|
|
2019
|
|
2018
|
||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Foreign exchange contracts
|
|
$
|
126
|
|
|
$
|
4,662
|
|
|
Net Sales
|
|
$
|
238,263
|
|
$
|
212,820
|
|
|
$
|
2,096
|
|
|
$
|
(415
|
)
|
|
|
|
|
|
|
|
Cost of Sales
|
|
107,073
|
|
96,549
|
|
|
138
|
|
|
32
|
|
|||||||
Pre-tax gain (loss)
|
|
$
|
126
|
|
|
$
|
4,662
|
|
|
|
|
|
|
|
$
|
2,234
|
|
|
$
|
(383
|
)
|
||||
Tax expense (benefit)
|
|
30
|
|
|
1,126
|
|
|
|
|
|
|
|
540
|
|
|
(92
|
)
|
||||||||
Net gain (loss)
|
|
$
|
96
|
|
|
$
|
3,536
|
|
|
|
|
|
|
|
$
|
1,694
|
|
|
$
|
(291
|
)
|
|
|
Amount of Gain (Loss) Recognized in AOCI
|
|
Consolidated Condensed Statements of Comprehensive Income
|
|
Amount of Gain (Loss) Reclassified from AOCI
|
|||||||||||||||||||
|
|
Six Months Ended June 30,
|
|
|
|
Six Months Ended June 30,
|
Six Months Ended June 30,
|
||||||||||||||||||
|
|
|
|
|
|
|
|
Total Amount of Line Item Presented
|
|
|
|
|
|||||||||||||
Derivative Instrument
|
|
2019
|
|
2018
|
|
Location of amount reclassified
|
|
2019
|
2018
|
|
2019
|
|
2018
|
||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Foreign exchange contracts
|
|
$
|
1,864
|
|
|
$
|
5,492
|
|
|
Net Sales
|
|
$
|
456,641
|
|
$
|
414,884
|
|
|
$
|
3,593
|
|
|
$
|
(1,828
|
)
|
|
|
|
|
|
|
|
Cost of Sales
|
|
204,013
|
|
189,056
|
|
|
239
|
|
|
183
|
|
|||||||
Pre-tax gain (loss)
|
|
$
|
1,864
|
|
|
$
|
5,492
|
|
|
|
|
|
|
|
$
|
3,832
|
|
|
$
|
(1,645
|
)
|
||||
Tax expense (benefit)
|
|
450
|
|
|
1,327
|
|
|
|
|
|
|
|
926
|
|
|
(397
|
)
|
||||||||
Net gain (loss)
|
|
$
|
1,414
|
|
|
$
|
4,165
|
|
|
|
|
|
|
|
$
|
2,906
|
|
|
$
|
(1,248
|
)
|
|
|
|
|
Three Months Ended June 30,
|
|
Six Months Ended June 30,
|
||||||||||||
Derivative Instrument
|
|
Location on Consolidated Condensed Statements of Comprehensive Income
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
|
|
|
|
|
|
|
|
|
|
|
||||||||
Net gain (loss) on currency forward contracts
|
|
Selling and administrative expense
|
|
$
|
(312
|
)
|
|
$
|
438
|
|
|
$
|
(493
|
)
|
|
$
|
350
|
|
Net gain (loss) on currency transaction exposures
|
|
Selling and administrative expense
|
|
$
|
67
|
|
|
$
|
(585
|
)
|
|
$
|
(161
|
)
|
|
$
|
(712
|
)
|
June 30, 2019
|
Location on Consolidated Condensed Balance Sheet
|
Asset Fair Value
|
|
Liabilities Fair Value
|
|
Net
Fair
Value
|
||||||
Derivatives designated as hedged instruments:
|
|
|
|
|
|
|
||||||
Foreign exchange contracts
|
Prepaids and other current assets
|
$
|
3,766
|
|
|
$
|
(441
|
)
|
|
$
|
3,325
|
|
Foreign exchange contracts
|
Other long-term assets
|
409
|
|
|
(315
|
)
|
|
94
|
|
|||
|
|
$
|
4,175
|
|
|
$
|
(756
|
)
|
|
$
|
3,419
|
|
|
|
|
|
|
|
|
||||||
Derivatives not designated as hedging instruments:
|
|
|
|
|
|
|
|
|
|
|||
Foreign exchange contracts
|
Prepaids and other current assets
|
12
|
|
|
(120
|
)
|
|
(108
|
)
|
|||
|
|
|
|
|
|
|
|
|||||
Total derivatives
|
|
$
|
4,187
|
|
|
$
|
(876
|
)
|
|
$
|
3,311
|
|
December 31, 2018
|
Location on Consolidated Condensed Balance Sheet
|
Asset Fair Value
|
|
Liabilities Fair Value
|
|
Net
Fair
Value
|
||||||
Derivatives designated as hedged instruments:
|
|
|
|
|
|
|
||||||
Foreign exchange contracts
|
Prepaids and other current assets
|
$
|
5,817
|
|
|
$
|
(431
|
)
|
|
$
|
5,386
|
|
|
|
|
|
|
|
|
||||||
Derivatives not designated as hedging instruments:
|
|
|
|
|
|
|
|
|
||||
Foreign exchange contracts
|
Prepaids and other current assets
|
19
|
|
|
(217
|
)
|
|
(198
|
)
|
|||
|
|
|
|
|
|
|
||||||
Total derivatives
|
|
$
|
5,836
|
|
|
$
|
(648
|
)
|
|
$
|
5,188
|
|
|
June 30,
2019 |
|
December 31,
2018 |
||||
Raw materials
|
$
|
50,559
|
|
|
$
|
45,898
|
|
Work-in-process
|
16,475
|
|
|
15,000
|
|
||
Finished goods
|
105,768
|
|
|
93,701
|
|
||
Total
|
$
|
172,802
|
|
|
$
|
154,599
|
|
|
Three Months Ended June 30,
|
|
Six Months Ended June 30,
|
||||||||||||
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
Net income
|
$
|
5,695
|
|
|
$
|
8,719
|
|
|
$
|
6,716
|
|
|
$
|
19,376
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Basic – weighted average shares outstanding
|
28,276
|
|
|
28,075
|
|
|
28,228
|
|
|
28,059
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Effect of dilutive potential securities
|
1,061
|
|
|
771
|
|
|
969
|
|
|
680
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Diluted – weighted average shares outstanding
|
29,337
|
|
|
28,846
|
|
|
29,197
|
|
|
28,739
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Net income (per share)
|
|
|
|
|
|
|
|
|
|
|
|
||||
Basic
|
$
|
0.20
|
|
|
$
|
0.31
|
|
|
$
|
0.24
|
|
|
$
|
0.69
|
|
Diluted
|
0.19
|
|
|
0.30
|
|
|
0.23
|
|
|
0.67
|
|
|
Three Months Ended June 30,
|
|
Six Months Ended June 30,
|
||||
|
2019
|
|
2019
|
||||
Operating lease cost
|
$
|
1,986
|
|
|
$
|
3,971
|
|
Finance lease cost:
|
|
|
|
||||
Depreciation
|
54
|
|
|
107
|
|
||
Interest on lease liabilities
|
6
|
|
|
13
|
|
||
Total finance lease cost
|
60
|
|
|
120
|
|
||
Total lease cost
|
$
|
2,046
|
|
|
$
|
4,091
|
|
|
June 30, 2019
|
||
Operating leases
|
|
||
Other assets (net of lease impairment of $1,131)
|
$
|
14,936
|
|
|
|
||
Other current liabilities
|
$
|
6,215
|
|
Other long-term liabilities
|
10,217
|
|
|
Total operating lease liabilities
|
$
|
16,432
|
|
|
|
||
Finance leases
|
|
||
Property, plant and equipment, gross
|
$
|
1,182
|
|
Accumulated depreciation
|
(363
|
)
|
|
Property, plant and equipment, net
|
$
|
819
|
|
|
|
||
Current portion of long-term debt
|
$
|
265
|
|
Long-term debt
|
243
|
|
|
Total finance lease liabilities
|
$
|
508
|
|
|
|
||
|
|
||
Weighted average remaining lease term (in years)
|
|
||
Operating leases
|
3.75 years
|
|
|
Finance leases
|
3.87 years
|
|
|
|
|
||
Weighted average discount rate
|
|
||
Operating leases
|
4.41
|
%
|
|
Finance leases
|
4.91
|
%
|
|
Six Months Ended June 30,
|
||
|
2019
|
||
|
|
||
Cash paid for amounts included in the measurement of lease liabilities:
|
|
||
Operating cash flows from operating leases
|
$
|
4,268
|
|
Financing cash flows from finance leases
|
162
|
|
|
|
|
||
Right-of-use assets obtained in exchange for lease obligations:
|
|
||
Operating leases
|
849
|
|
|
Finance leases
|
52
|
|
|
Finance Lease
|
|
Operating Lease
|
||||
|
|
|
|
||||
Remaining, 2019
|
$
|
180
|
|
|
$
|
3,972
|
|
2020
|
234
|
|
|
5,075
|
|
||
2021
|
35
|
|
|
3,214
|
|
||
2022
|
88
|
|
|
2,499
|
|
||
2023
|
5
|
|
|
1,578
|
|
||
2024
|
—
|
|
|
723
|
|
||
Thereafter
|
—
|
|
|
771
|
|
||
Total lease payments
|
542
|
|
|
17,832
|
|
||
|
|
|
|
||||
Less imputed interest
|
(34
|
)
|
|
(1,400
|
)
|
||
|
|
|
|
||||
Total lease liabilities
|
$
|
508
|
|
|
$
|
16,432
|
|
Balance as of December 31, 2018
|
$
|
400,440
|
|
|
|
||
Goodwill resulting from business acquisition
|
215,793
|
|
|
|
|
||
Foreign currency translation
|
194
|
|
|
|
|
||
Balance as of June 30, 2019
|
$
|
616,427
|
|
|
June 30, 2019
|
|
December 31, 2018
|
|||||||||||||
|
Weighted Average Amortization Period (Years)
|
Gross
Carrying
Amount
|
|
Accumulated
Amortization
|
|
Gross
Carrying
Amount
|
|
Accumulated
Amortization
|
||||||||
Amortized intangible assets:
|
|
|
|
|
|
|
|
|
||||||||
|
|
|
|
|
|
|
|
|
||||||||
Customer and distributor relationships
|
24
|
$
|
338,557
|
|
|
$
|
(105,878
|
)
|
|
$
|
214,577
|
|
|
$
|
(97,131
|
)
|
|
|
|
|
|
|
|
|
|
||||||||
Sales representation, marketing and promotional rights
|
25
|
149,376
|
|
|
(45,000
|
)
|
|
149,376
|
|
|
(42,000
|
)
|
||||
|
|
|
|
|
|
|
|
|
||||||||
Patents and other intangible assets
|
15
|
69,174
|
|
|
(45,339
|
)
|
|
61,473
|
|
|
(44,242
|
)
|
||||
|
|
|
|
|
|
|
|
|
||||||||
Developed technology
|
15
|
100,965
|
|
|
(10,189
|
)
|
|
91,965
|
|
|
(7,369
|
)
|
||||
|
|
|
|
|
|
|
|
|
||||||||
Unamortized intangible assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
|
|
|
|
|
|
|
|
||||||||
Trademarks and tradenames
|
|
86,544
|
|
|
—
|
|
|
86,544
|
|
|
—
|
|
||||
|
|
|
|
|
|
|
|
|
||||||||
|
22
|
$
|
744,616
|
|
|
$
|
(206,406
|
)
|
|
$
|
603,935
|
|
|
$
|
(190,742
|
)
|
|
Amortization included in expense
|
|
Amortization recorded as a reduction of revenue
|
|
Total
|
||||||
Remaining, 2019
|
$
|
13,417
|
|
|
$
|
3,000
|
|
|
$
|
16,417
|
|
2020
|
27,301
|
|
|
6,000
|
|
|
33,301
|
|
|||
2021
|
26,510
|
|
|
6,000
|
|
|
32,510
|
|
|||
2022
|
25,361
|
|
|
6,000
|
|
|
31,361
|
|
|||
2023
|
24,507
|
|
|
6,000
|
|
|
30,507
|
|
|||
2024
|
23,730
|
|
|
6,000
|
|
|
29,730
|
|
|
2019
|
|
2018
|
||||
Balance as of January 1,
|
$
|
1,798
|
|
|
$
|
1,750
|
|
|
|
|
|
||||
Provision for warranties
|
1,020
|
|
|
678
|
|
||
Claims made
|
(696
|
)
|
|
(611
|
)
|
||
|
|
|
|
|
|||
Balance as of June 30,
|
$
|
2,122
|
|
|
$
|
1,817
|
|
|
Three Months Ended June 30,
|
Six Months Ended June 30,
|
||||||||||||
|
2019
|
|
2018
|
2019
|
|
2018
|
||||||||
Service cost
|
$
|
253
|
|
|
$
|
169
|
|
$
|
506
|
|
|
$
|
338
|
|
|
|
|
|
|
|
|
|
|
||||||
Interest cost on projected benefit obligation
|
782
|
|
|
701
|
|
1,564
|
|
|
1,403
|
|
||||
|
|
|
|
|
|
|
|
|
||||||
Expected return on plan assets
|
(1,181
|
)
|
|
(1,354
|
)
|
(2,362
|
)
|
|
(2,709
|
)
|
||||
|
|
|
|
|
|
|
|
|
||||||
Net amortization and deferral
|
720
|
|
|
672
|
|
1,440
|
|
|
1,344
|
|
||||
|
|
|
|
|
|
|
|
|
||||||
Net periodic pension cost
|
$
|
574
|
|
|
$
|
188
|
|
$
|
1,148
|
|
|
$
|
376
|
|
|
Three Months Ended June 30,
|
|
Six Months Ended June 30,
|
||||||||||||
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
|
|
|
|
|
|
|
|
||||||||
Business acquisition costs included in cost of sales
|
$
|
503
|
|
|
$
|
—
|
|
|
$
|
1,163
|
|
|
$
|
—
|
|
|
|
|
|
|
|
|
|
||||||||
Business acquisition costs included in selling and administrative expense
|
$
|
2,461
|
|
|
$
|
—
|
|
|
$
|
9,706
|
|
|
$
|
—
|
|
|
|
|
|
|
|
|
|
||||||||
Debt refinancing costs included in other expense
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
3,904
|
|
|
$
|
—
|
|
|
Three Months Ended June 30,
|
|
Six Months Ended June 30,
|
||||||||||||
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
Orthopedic surgery
|
$
|
115,757
|
|
|
$
|
110,131
|
|
|
$
|
229,194
|
|
|
$
|
218,994
|
|
General surgery
|
122,506
|
|
|
102,689
|
|
|
227,447
|
|
|
195,890
|
|
||||
Consolidated net sales
|
$
|
238,263
|
|
|
$
|
212,820
|
|
|
$
|
456,641
|
|
|
$
|
414,884
|
|
|
June 30, 2019
|
|
December 31, 2018
|
||||
Revolving line of credit
|
$
|
262,000
|
|
|
$
|
312,000
|
|
Term loan, net of deferred debt issuance costs of $1,727 and $311 in 2019 and 2018, respectively
|
259,960
|
|
|
144,064
|
|
||
2.625% convertible notes, net of deferred debt issuance costs of $9,964 and unamortized discount of $47,841 in 2019
|
287,195
|
|
|
—
|
|
||
Financing leases
|
508
|
|
|
—
|
|
||
Mortgage notes
|
—
|
|
|
836
|
|
||
Total debt
|
809,663
|
|
|
456,900
|
|
||
Less: Current portion
|
13,515
|
|
|
18,336
|
|
||
Total long-term debt
|
$
|
796,148
|
|
|
$
|
438,564
|
|
Remaining, 2019
|
$
|
6,625
|
|
2020
|
13,250
|
|
|
2021
|
18,219
|
|
|
2022
|
24,844
|
|
|
2023
|
460,750
|
|
|
2024
|
345,000
|
|
Item 2.
|
MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS
|
|
•
|
general economic and business conditions;
|
•
|
compliance with and changes in regulatory requirements;
|
•
|
the possibility that United States or foreign regulatory and/or administrative agencies may initiate enforcement actions against us or our distributors;
|
•
|
competition;
|
•
|
changes in customer preferences;
|
•
|
changes in technology;
|
•
|
the introduction and acceptance of new products;
|
•
|
the availability and cost of materials;
|
•
|
cyclical customer purchasing patterns due to budgetary and other constraints;
|
•
|
quality of our management and business abilities and the judgment of our personnel;
|
•
|
the availability, terms and deployment of capital;
|
•
|
future levels of indebtedness and capital spending;
|
•
|
changes in foreign exchange and interest rates;
|
•
|
the ability to evaluate, finance and integrate acquired businesses, products and companies;
|
•
|
changes in business strategy;
|
•
|
the risk of an information security breach, including a cybersecurity breach;
|
•
|
the risk of a lack of allograft tissues due to reduced donations of such tissues or due to tissues not meeting the appropriate high standards for screening and/or processing of such tissues;
|
•
|
the ability to defend and enforce intellectual property;
|
•
|
the risk of patent, product and other litigation, as well as the cost associated with such litigation;
|
•
|
environmental compliance and remediation costs, including the risks arising from environmental compliance with suppliers and sterilizers and, in particular, sterilizers which use Ethylene Oxide (“EtO”), as approximately 25% of CONMED’s products are sterilized with EtO; and
|
•
|
trade protection measures, tariffs and other border taxes, and import or export licensing requirements.
|
|
Three Months Ended June 30,
|
|
Six Months Ended June 30,
|
||||||||
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||
Orthopedic surgery
|
49
|
%
|
|
52
|
%
|
|
50
|
%
|
|
53
|
%
|
General surgery
|
51
|
%
|
|
48
|
%
|
|
50
|
%
|
|
47
|
%
|
Consolidated net sales
|
100
|
%
|
|
100
|
%
|
|
100
|
%
|
|
100
|
%
|
•
|
inventory valuation; and
|
•
|
goodwill and intangible assets.
|
|
Three Months Ended June 30,
|
|
Six Months Ended June 30,
|
||||||||
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||
Net sales
|
100.0
|
%
|
|
100.0
|
%
|
|
100.0
|
%
|
|
100.0
|
%
|
Cost of sales
|
44.9
|
|
|
45.4
|
|
|
44.7
|
|
|
45.6
|
|
Gross profit
|
55.1
|
|
|
54.6
|
|
|
55.3
|
|
|
54.4
|
|
Selling and administrative expense
|
42.3
|
|
|
42.1
|
|
|
43.8
|
|
|
42.0
|
|
Research and development expense
|
5.0
|
|
|
4.7
|
|
|
4.9
|
|
|
4.3
|
|
Income from operations
|
7.8
|
|
|
7.8
|
|
|
6.6
|
|
|
8.2
|
|
Other expense
|
0.1
|
|
|
—
|
|
|
1.0
|
|
|
—
|
|
Interest expense
|
5.0
|
|
|
2.4
|
|
|
4.6
|
|
|
2.4
|
|
Income before income taxes
|
2.7
|
|
|
5.4
|
|
|
1.0
|
|
|
5.8
|
|
Provision (benefit) for income taxes
|
0.3
|
|
|
1.3
|
|
|
(0.5
|
)
|
|
1.1
|
|
Net income
|
2.4
|
%
|
|
4.1
|
%
|
|
1.5
|
%
|
|
4.7
|
%
|
|
Three Months Ended
|
|||||||||||||||
|
|
|
|
|
% Change
|
|||||||||||
|
2019
|
|
2018
|
|
As Reported
|
|
Impact of Foreign Currency
|
|
Constant Currency
|
|||||||
Orthopedic surgery
|
$
|
115.8
|
|
|
$
|
110.1
|
|
|
5.1
|
%
|
|
1.2
|
%
|
|
6.3
|
%
|
General surgery
|
122.5
|
|
|
102.7
|
|
|
19.3
|
%
|
|
0.5
|
%
|
|
19.8
|
%
|
||
Net sales
|
$
|
238.3
|
|
|
$
|
212.8
|
|
|
12.0
|
%
|
|
0.8
|
%
|
|
12.8
|
%
|
|
|
|
|
|
|
|
|
|
|
|||||||
Single-use products
|
$
|
190.3
|
|
|
$
|
171.8
|
|
|
10.7
|
%
|
|
0.8
|
%
|
|
11.5
|
%
|
Capital products
|
48.0
|
|
|
41.0
|
|
|
17.1
|
%
|
|
1.1
|
%
|
|
18.2
|
%
|
||
Net sales
|
$
|
238.3
|
|
|
$
|
212.8
|
|
|
12.0
|
%
|
|
0.8
|
%
|
|
12.8
|
%
|
|
|
|
|
|
|
|
|
|
|
|||||||
|
Six Months Ended
|
|||||||||||||||
|
|
|
|
|
% Change
|
|||||||||||
|
2019
|
|
2018
|
|
As Reported
|
|
Impact of Foreign Currency
|
|
Constant Currency
|
|||||||
Orthopedic surgery
|
$
|
229.2
|
|
|
$
|
219.0
|
|
|
4.7
|
%
|
|
1.3
|
%
|
|
6.0
|
%
|
General surgery
|
227.4
|
|
|
195.9
|
|
|
16.1
|
%
|
|
0.7
|
%
|
|
16.8
|
%
|
||
Net sales
|
$
|
456.6
|
|
|
$
|
414.9
|
|
|
10.1
|
%
|
|
1.0
|
%
|
|
11.1
|
%
|
|
|
|
|
|
|
|
|
|
|
|||||||
Single-use products
|
$
|
362.6
|
|
|
$
|
333.5
|
|
|
8.7
|
%
|
|
1.0
|
%
|
|
9.7
|
%
|
Capital products
|
94.0
|
|
|
81.4
|
|
|
15.5
|
%
|
|
1.3
|
%
|
|
16.8
|
%
|
||
Net sales
|
$
|
456.6
|
|
|
$
|
414.9
|
|
|
10.1
|
%
|
|
1.0
|
%
|
|
11.1
|
%
|
•
|
Orthopedic surgery sales increased
5.1%
and
4.7%
in the
three and six months ended
June 30, 2019
, respectively, driven by new product innovations in the procedure specific categories coupled with continued strength in capital sales.
|
•
|
General surgery sales increased
19.3%
and
16.1%
in the
three and six months ended
June 30, 2019
, respectively, driven by sales from the Buffalo Filter acquisition, as well as growth across the portfolio.
|
•
|
Lower net income in 2019 compared to 2018 due to costs incurred in conjunction with the Buffalo Filter Acquisition as further described in
Note 3
and
Note 13
to the consolidated condensed financial statements.
|
•
|
Higher inventory levels as we continue to support new product introductions and sales growth.
|
•
|
Higher commission and incentive compensation payments associated with increased sales.
|
•
|
We received proceeds of
$345.0 million
related to the issuance of
2.625%
convertible notes as further described below.
|
•
|
We entered into a
$265.0 million
term loan in conjunction with the refinancing of our senior credit agreement. This new term loan replaced the previous term loan and resulted in net proceeds of
$117.3 million
during the
six months ended
June 30, 2019
compared to
$6.6 million
in payments in the prior year.
|
•
|
We had net payments on our revolving line of credit of
$50.0 million
compared to
$30.0 million
during the
six months ended
June 30, 2018
.
|
•
|
We paid
$51.2 million
to purchase hedges related to our convertible notes. Partially offsetting this, were proceeds of
$30.6 million
from the issuance of warrants as further described below.
|
•
|
We paid
$16.2 million
in debt issuance costs associated with the
2.625%
convertible notes and the sixth amended and restated senior credit agreement.
|
•
|
We paid
$4.4 million
in contingent consideration related to prior asset acquisitions.
|
|
Payments Due by Period
|
||||||||||||||||
|
Total
|
|
Less than
1 Year
|
|
1-3
Years
|
|
3-5
Years
|
|
More than
5 Years
|
||||||||
|
|
|
|
|
|
|
|
|
|
||||||||
Long-term debt
|
$
|
868,688
|
|
|
$
|
13,250
|
|
|
36,438
|
|
|
819,000
|
|
|
$
|
—
|
|
Exhibit Index
|
|
|
|
Exhibit No.
|
Description of Exhibit
|
|
|
31.1
|
|
|
|
31.2
|
|
|
|
32.1
|
|
|
|
101.INS
|
XBRL Instance Document - the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document.
|
|
|
101.SCH
|
XBRL Taxonomy Extension Schema Document
|
|
|
101.CAL
|
XBRL Taxonomy Extension Calculation Linkbase Document
|
|
|
101.DEF
|
XBRL Taxonomy Extension Definition Linkbase Document
|
|
|
101.LAB
|
XBRL Taxonomy Extension Label Linkbase Document
|
|
|
101.PRE
|
XBRL Taxonomy Extension Presentation Linkbase Dcoument
|
|
|
CONMED CORPORATION
|
|
|
|
|
|
|
|
|
|
|
|
By: /s/ Todd W. Garner
|
|
|
Todd W. Garner
|
|
|
Executive Vice President and
|
|
|
Chief Financial Officer
|
|
|
|
|
|
Date:
|
|
|
August 1, 2019
|
1 Year CONMED Chart |
1 Month CONMED Chart |
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