Conmed Corporation (CNMD) has reported 14.57 percent fall in profit for the quarter ended Dec. 31, 2016. The company has earned $6.71 million, or $0.24 a share in the quarter, compared with $7.85 million, or $0.28 a share for the same period last year. On the other hand, adjusted net income for the quarter stood at $15.10 million, or $0.54 a share compared with $16.59 million or $0.60 a share, a year ago. Revenue during the quarter grew 6.85 percent to $204.09 million from $191.02 million in the previous year period. Gross margin for the quarter contracted 119 basis points over the previous year period to 52.41 percent. Total expenses were 93.82 percent of quarterly revenues, up from 93.21 percent for the same period last year. That has resulted in a contraction of 61 basis points in operating margin to 6.18 percent.
Operating income for the quarter was $12.61 million, compared with $12.97 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $36.40 million compared with $35.29 million in the prior year period. At the same time, adjusted EBITDA margin contracted 64 basis points in the quarter to 17.83 percent from 18.47 percent in the last year period.
"Our International business and the domestic General Surgery category, which represent 78% of our total revenue, exited the year with positive momentum. Overall, we are demonstrating consistent and improving performance across these areas. Clearly, these successes were offset by ongoing challenges in domestic Orthopedics, where we believe we are taking the appropriate steps to drive improvement in this business over the coming quarters," commented Curt R. Hartman, CONMEDs president and chief executive officer.
Operating cash flow declinesConmed Corporation has generated cash of $38.22 million from operating activities during the year, down 20.48 percent or $9.85 million, when compared with the last year. The company has spent $266.02 million cash to meet investing activities during the year as against cash outgo of $24.36 million in the last year.
Cash flow from financing activities was $184.20 million for the year as against cash outgo of $9.77 million in the last year period.
Cash and cash equivalents stood at $27.43 million as on Dec. 31, 2016, down 62.17 percent or $45.08 million from $72.50 million on Dec. 31, 2015.
Debt increases substantially
Conmed Corporation has witnessed an increase in total debt over the last one year. It stood at $488.29 million as on Dec. 31, 2016, up 81.20 percent or $218.82 million from $269.47 million on Dec. 31, 2015. Total debt was 36.74 percent of total assets as on Dec. 31, 2016, compared with 24.21 percent on Dec. 31, 2015. Debt to equity ratio was at 0.84 as on Dec. 31, 2016, up from 0.46 as on Dec. 31, 2015. Interest coverage ratio deteriorated to 3.22 for the quarter from 8.22 for the same period last year. Disclaimer: Please note that this is an auto-generated article. IRIS does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. IRIS especially states that it has no financial liability whatsoever to any user on account of the use of information provided on its website. For queries contact: editor@irisindia.net
