CNMD - Earnings call transcript Q4 2020

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Operator

Good afternoon, everyone.

Before the conference begins, let me remind you that during this call, management will be making comments and statements regarding its financial outlook and its plans and objectives, which represent forward-looking statements, that involve risks and uncertainties as these terms are defined under the federal securities laws. Investors are cautioned that any such forward-looking statements are not guarantees of future events, performance or results and the Company's actual results may differ materially from its current expectations. Please refer to the risks and other uncertainties disclosed under the forward-looking information in today's press release as well as the Company's SEC filings for more details on the risks and uncertainties that may cause actual results to differ materially. The Company disclaims any obligation to update any forward-looking statements that may be discussed during the call, except as many -- may be required by applicable law.

management certain hear during adjusted also discussion. this will refer non-GAAP to measurements You

Company, be excluding by per are for other or credits earnings Company's charges the not management reconciliation the figures for and of year-to-year these share to While substitute adjusted measure basis normal considered regular companies. figures to the performance quarter-to-quarter supporting and aid Adjusted on financial income a Company's posted uses that benchmarking adjusting specified its the of the Company These the to items special income in outside technology are the operations. in ongoing monitoring release website. against Company's the and from ongoing and medical these earnings are measurements, GAAP net the

these opening I announcements Curt Executive CONMED's now Chair call and the Mr. the remarks. completed, Hartman? Officer Hartman, turn Chief over Board, President to of for required With will

Curt Hartman

Thank quarter for you, me call and Angela. open year. the the financial call to Good Executive a we'll operating the for of questions. and discuss is I call. Chief for Officer. our will Todd brief full full and Vice on Today, XXXX performance and financial CONMED's a provide With the overview detailed analysis quarter Financial guidance. Garner, financial Todd that, you After earnings us fourth joining and year provide President then afternoon our and will highlights more of initial thank fourth XXXX your

in decrease for a reported of million, results. were a Turning decrease constant year-over-year $XXX.X and sales Total quarter as fourth currency. our to of X.X% the X.X% representing

XXXX. in X.X% and of GAAP to net the $XXX.X an of year, a net compares million, full quarter during million year-over-year income income the X.X% decrease sales our as of currency. representing $XX.X fourth totaled This quarter, perspective, earnings For million. $XX.X From fourth reached reported constant in the

income year-over-year. decreased net X.X% our adjusted that earnings $X.XX Excluding and our special net comparability, of diluted X.X% year-over-year decreased $XX of items adjusted affected million share per

For to $XX.X the in net our totaled income of XXXX. income million compared year, million GAAP full $X.X net

Excluding net and our share adjusted decreased ended income per decreased product net of comparability, diluted our XX.X% and great opportunities adjusted XX.X% given million XXXX that items portfolio. year-over-year earnings year-over-year. deal special $X.XX of a affected expanding with of enthusiasm, our market We $XX.X

to dynamic have relates fourth all down or good the our believe you COVID-XX be our the around intermittently the the customers presented that quarter. challenges every aware it operated same. customers partners lighter periods world have operationally touch, know, we operating for for We're capital the and As shut of a pandemic company. do relationships a year, quarter, taking faced, Throughout will the particularly sales. many of difficulties Many continued have in longer-term been view time. as This strived to including financially and varying the of unique taken of them, these acutely markets to both and have fourth

I'll innovative Filter full year to products put customers steps agility turn people, both company, we offering. define financial focused company in in the of resilience successful with firmly pandemic, a Overall, market and believe flexibility with market possible introduction ensuring businesses of spite in face and on over success our of long-term. drive efforts that staying In the of of for We With Buffalo remain pleased the will through the position Todd. the team's the to very supported right demonstrated are call the Overall, continued proud we that revenue team's the believe growth pandemic, our delivered I'm well-positioned our our of strategies responsiveness we growth. are health long-term many above we the achieve we above that, long-term to that the our confident to our committed and as and profitable and in the while taking best Todd? XXXX, remaining performance earnings. by across I'm our

Todd Garner

the Today, full All believe the sales numbers numbers specific both in Thanks, included time. on time view only terribly and is We to we discuss growth don't I release press reference press refer Curt. discuss will our QX full be in numbers reconciliation spending The year will on this to or at call, we year. today that you and QX will currency. for constant the Normally, GAAP given is the this comparables. relevant release. helpful for

For quarter our sales total XXXX, of the fourth declined X.X%.

the a had close first quarter, were well the revenue months on two performance, very of December impact revenue COVID quarter prior the meaningful the was full to but the year. short prior-year of While

our in fourth quarter. quarter, the U.S. the sales For versus the prior decreased X.X% year

sales down were Our single-use X.X% capital in the double-digits. the products grew U.S.,

In the double-digits Canada XX.X% declined in largely believe quarter in sales to year. channel. the down distributors future and fourth for of sales news sales X.X% distribution orthopedics the decreasing geographies Latin the during The less good Worldwide for Japan this revenue to quarter were reduction in prior grew. orthopedics is sharp inventories. due in impacted Japan fourth international Capital U.S., the decreased compared in rest globally decreased X.X%. and decreased quarter. most their XX.X% was in Our Australia quarter. the both orthopedic sales in The the the due the while and Asia orthopedic and single-digits declined were to internationally, inventory The America. Europe quarter, sales We

grow the touch surgery about customer -- increased the product Curt continue worldwide and comes will this improving procedural U.S. focus XX%. surgery to taken it benefit of believe decreased revenue customers when our combined timing relationships capital strengthen in purchases light Despite softness the safety. general We XX.X%. we've to long-term. the two revenue will Internationally, to X.X% our operating in capital a XXXX, believe revenue Total Buffalo X.X%. generally in on and these grew with AirSeal quarter. decreased from As general over said, Filter room general the QX, surgery lines and

expense let's to Now side of the move statement. income the

and will deferred charges restructurings fees special the for acquisitions from quarter the XX.X%, expenses items, assets of of excluding intangible of related was year We decrease and to which basis amortization gross amortization integrations, debt XX prior discount and and quarter. margin discuss and profitability financing Adjusted include points of tax. net fourth a

our product channel margin. expected, to continues in our drive mix we As improvement gross and

from fourth of manufacturing total on QX. for in that masking was However, plans quarter mentioned and our as which $X.XX adjusted tax was benefit GAAP in variances income last Research $X.X call, quarter XXXX prior revenue. we same on million X.X% adjusted SG&A due of the million on X.X% sales, an lower of was is quarter. resolution QX over net from the of quarter. of benefited prior or $XX.X quarter basis basis. totaled effective The stock the year we XXXX QX per XX.X% year development basis was an XX% in from sales, improvement the were expense Fourth Fourth only XX excess rate unfavorable increase expenses as the recognition ratio of earnings an points the audits. the to and adjusted tax QX, increase diluted share, Interest expense from an

fourth $XX.X earlier, million net income of the million items compared of special reported impact the adjusted to $XX.X in we of XXXX. quarter discussed Excluding

quarter fourth the compared diluted share adjusted period. per Our net in $X.XX to prior was earnings $X.XX year

sheet. balance the to Turning

at days of the Our receivable of cash balance of XXX, quarter-end as at September at QX. Accounts were days end million end the was Inventory XXst the were the million $XX.X they XXXX. X $XX.X XX, days than quarter compared XX days XXXX. which XX was as end of days better of compared to to were at December

the did versus we due year as September million quarter of at as typical this the pandemic. debt the sales end not see However, was the million $XXX of softer Long-term to $XXX a XXth. drop result December of

on leverage XX, X.X Our XXXX ratio December was times.

very are with to banks. agreement We favorably performing the our

EBITDA is operations to million in for $XX.X from compared capital million. to $XXX fourth XXXX on was $X.X our coverage quarter provided of Cash QX were our agreement the in $XX.X liquidity in million. minimum and XXXX. XXst QX $XX.X X.XX was expenditures agreement $XXX the and Adjusted charge million X.XX versus quarter fixed million compared flow our of was million December Our

very pleased way the our navigated We teams with are year. have this challenging

by we future, encouraged we and As our with our the are of strength positioning to look our business the customers.

levels a of return here trajectory There our as will While with of timing behind as we're the us, of to be is enter deal put uncertainty to pre-pandemic XXXX. XXXX great the anxious a to to customers volumes of when about free return still pandemic still as operation. is pre-pandemic the pandemic we when well us

and a for financial where from on XXXX this related new burden will hospitals. we the answer We more lower our XXXX by and part to affect at lived variant end have available QX right the year impact beginning that Despite believe toward how the impacted QX. the in will linger provide we better now our key are transition to the contagious significantly current the quickly globally by with the of the continue the a a we have of transition lingering decided post-pandemic of how anticipate year. can be these guidance the questions over healthcare we we virus year into first impacts and we environment on vaccines for the within to have pandemic business. framework the understanding virus can't months the XX we questions, now impact of We The view than did a However, assumptions. as of will

Our healthcare the known be of assumption disbursement reducing effective on from is virus. will the that months, of at variance the the take global but vaccines burden

improve the before States markets in growth United procedural expect to do. We international

the surgery volumes the volumes does. will see we As general improved to improve we sequentially and before expect sports year medicine progresses, anticipate

of we and for billion. activities typically levels medicine to suspended an sport between globally. many that from all $XXX do are to assumptions still lead go of injury takes quarters Those until way the the year athlete guidance surgery, full us sports for and anticipate sports Given months procedural to couple it to to pre-pandemic return growth not XXXX team resume $X.XX after million a revenue that

We be XXXX. expect currency to to immaterial

$XXX million. expect million QX revenue and $XXX between We

the first first as to revenue full-year As be half, and be XX% the in of half we year to of year. recognized and to second between half in second of of to the XX% XX% the our recognized expect half XX% revenue phasing far

be For the expect to XXXX $X.XX EPS, full $X.XX. we and adjusted year between

adjusted We EPS $X.XX $X.XX. QX expect to and between be

to be We a be by than are mix expect lighter Accordingly the of XX% in the performance half expect headwind be clear in the lower over impacted the expect half will adjusted experienced year XXXX be It the the impacted in to of will are we that After the second we will than QX the EPS also incurred. you and levels. second continued at This significantly QX we about XXXX. that XXXX XXX that first XXXX. because of QX costs in lower margins the the about recognized gross of the is I least to, we a likely first second manufacturing in about improvement unfavorable a freight XX% to higher in year. phasing tell QX the total gross tax be margins. as basis QX the can half half are as by quarter the this, after used and the year, continue full through in these P&L, levels rate we've QX gross lower production And variances second in likely in points QX. they XXXX four to months margins is of XXXX the before and show margins and that addressed of external half volumes are

was effective Our we of in XX.X% year for full tax myriad a XXXX. rate reasons to not do the expect that XXXX recur of adjusted for

each mix between major code line may and results the We the and are of other full geography be growth of long environment, Normally, the change news our of tax Because will we not term. that the in need uncertainty detail we and is going portfolio to or you for currently income our the responsive best margins the XX% to The rate strategy pieces of than do to expect and current we remain and year. statement for working. The tax give that assuming that the moving XX% to different XXXX in U.S. shareholders for our delivering the agile is higher over good that on we shift in today. are matter. the higher level any no be assuming

We are increasingly customer improve. competitive in the marketplace continues engagement to and our

clinically are products innovation most more AirSeal Our the the is more impactful Buffalo obviously and delivering now. and are are way right leading Filter effective. profitable that

the we true And support However, infrastructure product higher believe our in future significant that and contribute as well. will a can our revenue in markets. lines large way other much in remains it attractive

the both share. believe With reward we doing As pandemic, with we've customers our market valued we Angelo margin the as our And work actions clearer innovation for continue like believe to and volumes return, to you over out been become and will of transition we and more to trust profile as turn will on the increased I'd obvious. questions. that, partners

Operator

go line question And is the from ahead. SVB Newitter first [Operator Instructions] Richard Leerink. your of Please with

Unidentified Analyst

for Aaron is so Thanks on this much Hi, taking questions. for Rich. our

quarter throughout those segments? XQ? the I then some the that just out so on a talk on ortho overall some and about understanding and little just much Thanks of you've of was you that seen, between did the the maybe in information Obviously, fourth guidance, how gen that could you those early procedures, provided one. maybe maybe a broken dynamics into Just were give color bit for the surge between quick if you wondering but color

Curt Hartman

when surge, specific or about talking you ortho gen Aaron, procedure what you are asking? help the me you here trends just a differences little said between are and

Unidentified Analyst

just the XQ. trends throughout respective you and early sorry, the in Yeah, Yeah. saw maybe then procedure XQ segments in that

Curt Hartman

Okay.

I we seem the XQ, I quarter. we saw speaking December. third got continue broadly would to see I around Filter did But November We orthopedics more the platforms. attention volume, the think October, the start in month a to in is established it surgery, think what And would more good deceleration, to the commented, way procedures frame be again, applicable AirSeal as think that well as as general Buffalo I Obviously as of Todd into we good the business. was to see both platform. and continue AirSeal on

in are procedures weighted anywhere been On also as levels and heavily not and capital the business near more down normal of again about has past decreases. year, in that quarter. a that years capital, it's on consumable So a the capital continued orthopedics, XX% obviously business fourth

against QX, impact think, that it more from of just ortho the percentage and capital quarter, I little U.S. and geographies got outside we orthopedic again that change being stayed not I all both more the suppressed you as comment will you opening up, noted overall capacity QX, So Asia across tightening saw Europe a you general deeper just overall that think QX up, capital fourth because bigger various again tightening intermittent reserving really into tightened. being and in of don't side. I the of if again, way things markets but very saw bit or the side surgery and up

in comments. my not comment of QX. at I would point seeing this to kind think we're what summarize on that Probably going

Unidentified Analyst

much. heard so Thanks it's any just has legislation strong, of on the Filter, you so or very been states guys And Thanks around obviously, then passing Buffalo seen much. Okay, aerosolization. great. more quickly on

Curt Hartman

legislation the -- further And this the I question. a works, is in OR be both bit. this in great not COVID, the stalled, safe component of growth healthcare think announcement movement Buffalo No, a societies movement operating or fact events up me, is and that we really have are have let with if and not XXXX the times, towards additive, safe the a insistence legislation the the Filter the excuse said acquisition, There which said the of that of has that But worker the it's would driving you OR environment we've think put shifted, will. legislation, pandemic the legislation, we of in comments of many as market that various safe candidly in broad-based the legislation during operating what's the lot out, and environment a accelerated safe of. room with key so legislative priorities lot room that but has AirSeal and one on

Unidentified Analyst

Really much for thank so taking the great, it. you Okay, questions. appreciate

Operator

And your Marcus line question Please is next Morgan. ahead. go the of JP with Robbie from

Unidentified Analyst

on thanks taking gave. and the Hi, this Lily question helpful for is for color actually all Thanks you for the Robbie.

how past Buffalo talked revenues, higher bit is in which they should a what So comprise how Filter about you've XX%. were about we the of grow and AirSeal to continue XX% than thinking, over and

grower, that could X% an a digit So to than that on mid-single XX% rather of the think you grower? COVID, CONMED other do side make

Todd Garner

Thanks, Lily, great that's a question.

if think you total expect flat, don't to I -- do XX% we were I math premise we right. you question, flat else a the just on your be the get right, think post-pandemic. if everything certainly to growing -- growth your X% of XX%, the everything to else don't And

than of to markets. better our our grow We all segments all grow expect of -- markets better to than the

I it think there growth also talk guide, of strong And than in in on logical are to part finally to those think, the two number is to a other got about better we stronger and together and have that we're but contributes we What sure products growth. post-pandemic making logic a X%. CONMED when portfolio the we'll good do that has is, engine so, working that is should I place

pandemic, that strength game the and with obvious. more is that's happy plan think the be pandemic So and how when the will we're worked that's we through done

Operator

ahead. next is Todd the your from question of line Please go And Garner.

Unidentified Analyst

the be to that then you either see to just it's even side how of of you Afternoon. do touch questions. half for benefits guys? this taking than the about one, things, what do first other think Do with commentary back lighter touch? Maybe for long going you tangible or going and persist capital -- Are benefits you into the Curt of Todd, 'XX? year to that's Thanks you And this hey think the going expecting goodwill half customers. year, continue lighter we're on

Curt Hartman

the great and think region-by-region platform rolling the that global And touch, power but we it's We're the new just the environment on new candidly I been geographic items, receptive introduced more system. and would of to moment. is at now stages of in were bone we a a it's question. right a two both contrast refer capital customer the tool those what out So fourth both excited large to we're those basis. in about as lighter it of products video I with a quarter

start a force you candidly the maybe a still again, more the priority as not that's couple little majority But our touch. have not hear sales So going lighter I going they're their of that's we a bit I and is harder excited customers. to and hands year, of new probably quite the our from just products is against that's put a And think what new work customers. our market think in anything than capital for to

And referring we're that so them right now. priority not to touch, our say, we're it's hearing a just lighter

as opportunity. portfolio, hoping products back that sense to that I half. as in for more, the well our can to But goodwill think buys with patiently a of bode us be in we're that them certainly the comment, in should starts for year So our position in it we back if capital us the waiting and new the guidance half normalize

Unidentified Analyst

this half some expecting to side, financial of back results? on you're benefit the the Curt, the On

Curt Hartman

the and if a us force products, got year to should and our with the financially. the new half show obviously back we've capital in numbers normal I've sales two markets said of benefit it would return up in

Unidentified Analyst

it. Got

masked more just what here you half EBIT on And benefits. the is little in you. just are granular things with of you for kind exactly things. thank masking these side the about and of Can we may and helpful. expecting little then there's follow-up goes, be we're are that back points the then that question Todd, when some should Okay, expect expansion level of 'XX a Can some headwinds And a just seeing talk EBIT XX bit expansion EBIT the just that of to of some if it's be the specifically far then side as of of little XXX even bit? maybe ease? you more Just those you're things the that on as high-end thinking color metric on basis Thanks.

Todd Garner

I I'm like address guidance, It's that to great give to not detail granular in you surprised my all a granular will going but at to question. guidance. you'd best a love Matt, more a little question, detail the in on Yeah. your do to that be And we're position do but and the not more I'd today,

margin so another we solved it sitting that margins. that here need before depressed volumes and the in the that's lower from like in right, freight, is the and headwind you quarter problem for right? not half hits the gets part volumes here So a to these can normalized is and the really yet, after really way to more hangover past And gross of back first year essentially when more the biggest the occur is you of recognized today, are you start hit XXXX. expect headwinds higher to the see us problem solved and So get quarter

been way resilient and in the operating right the better we're and the sure principles places the the the pandemic. responsive granular that the we resources make more plays looks and we've than need then so continue out to, through is right we're lot kind and half. We're that back right. half, putting And first of those at spending a not being to times before probably not agile is, the reason resources whole And going

we've think unprecedented we're of I done great job to and continue through challenge to going do that. protecting a profitability So this

and math if are least you twice use given, top on mid-range the the You guidance, we're we I fast we've as if the of you profitability as bottom and you what at will had see in of XX can the points see you that our about improvement, And we've kind the right. guide is, talked even consistent to think on that do in pandemic, that's through growing certain then more margin right, we XXX sophisticated improvement we've kind in operating when told areas. the annually talked smarter principles. And of about we've longer-term, to margin CONMED leaner get and and basis pre-pandemic, with

And end I so, clear kind through think than see can right? that the hopefully year and And or the the better I -- -- very range. We've margin of that better been will XXXX, increasingly once gets that's that probably and be -- pandemic that investors. clouds you the happening I will much of to able engine you that think through operating end that that about closer think realistic of it's revenue challenging the muddiness can us, help actually to with apparent And is will top think the I is as as more that become to of bottom to and kind believe deliver behind But good clearer. profitability today. numbers with the progressively we as profile I that

Unidentified Analyst

Thank much. so granular. Very you

Operator

Please Stifel. the Your ahead. with Wise of Rick is line from next go question

Rick Wise

evening, gentlemen. Good

to just question Matt's follow-up excellent First, wanted always. I on, as

into. when and to another infrastructure -- environment, margin I a cost lower of take more when kind think things, compelling about of grow of couple you're both post-recovery potentially improved of of Just sort of that portfolio mean of products, I products, sort said sort Todd said you step we're room you of you mix, plenty better --

who just assume recovery, I your decent you is think whether help us if think sales pretty higher -- support think that. I said -- Maybe knows. 'XX a let's things infrastructure just like can through level you're oh thoughts of

the environment How Let's are do XX%? here? Is talking you assume steadily progressing to mean, optics towards and thinking CONMED of I it? comps, about topline year-over-year digits of it. we about that out margins I'm back you strange are this And outlook growing but about how not coming think longer-term upper-single

Curt Hartman

Rick. Sure,

Todd Garner

with your not a the But think game the assumption hope will we yeah, and And love a I be. Yeah. I guiding of to is being plays then XXXX correct. All right? premise idea in -- we're today, is guiding world post-pandemic and theoretical not we're by the that you, is obviously, to

right, than right there and we the is going all I and think see the be, tell get think said, number we're And on kind XXXX gross that to -- into grow healthier doing number towards pandemic gross progressing towards you that a more top the what the return, we're expect CONMED in on and cloud the has those will smarter but that margins moving procurement faster improving on what as not you to on I say is we had and yet think operating as operating. both is grow do. room lots sophisticated and as getting do for you top And when passed, of than we markets to bottom we're CONMED volumes our XX with the our mix we on faster prepared things, numbers we and specifically. will we the of than I'm I XX can are

the playbook. and that chances that delayed has us those is shored once And the behind pandemic future it's the in muddied in things right, but actually some improves the up so us. and some that pandemic of -- that's come ways, it's certainly true that, made some of The even,

but sure And make we executing of strength we're that we're do focused make optimistic, current environment on so business. and on the sure wisely in the we and the focus long-term

Rick Wise

the for you've like your you priorities thinking under great. to That's the be sense. scenarios in balance the hope end Maybe, year of you out? cash of where paydown, sheet generation, terms share Makes laid about debt talking Todd, at maybe XXXX it your sounds

Todd Garner

Sure. Yes. Rick. Thanks,

been It have -- and resilient, through flexibility necessary an the the lasted was banks pandemic to our It of the turns though to of we which trough, at a the be. pandemic, hindsight, out, make in the as the no the think amendment I the know, customers resilient. So it turns decisions out, peak everybody amendment we strategic make more to been sure with at could end didn't right when how probably ugly while, pandemic more that you even knows our and we QX. did that has need as all we've started, went do matter we right had decisions

the turns. be that Our not said healthcare guidance. we recent significant at should which the anticipated we any XXXX, projections, leverage at X.X X.X conference X.X ending M&A, XXXX year a on our was absent based and under We're is the in by end of at turns

which feel going X we're bought way a said, like the end the same be Filter. when about down that, on that's kind good turns turns, we Buffalo the so, to We of pandemic, even trajectory, And what think given to we'd close by to all we talked down pretty calendar. not it's we to but we that X of be is XXXX,

are priorities on that will is the to big that good we something but profile we be add we'll think and announce anything company the company. that to definitely with of and the that to is to plan to look Buffalo if continue haven't we for company, on of continue margin good Filter income job since active profile a the a stronger, We've tied act we a that find there. do to-date, with there gap to really and we and cash the done profitability to that. ways to look for that. continue front assets make not So job sure And growth And we obviously, had makes

priorities. those the So are kind of the

the strong Continued profitability of and business of on the long term blocking management the tackling, and company. focused good

Rick Wise

normalizing like I XX% if I all percentage last sorry, of The Great. capital at two what number sneak I'll one, And -- talking some of so if gross variance of mind? how What ones, range, quarter, this think Thank about just is margins in remember that of for the last quarter -- these were on quick we some first freight the you headwinds one businesses, And you fourth sort XX%? would in wouldn't the non-smoke point, gross kind margin if could. about. just of much. you

Todd Garner

will try. I Okay.

XX% would on side and we talk use. It's first XX% So on AirSeal I essentially is surgery. in more the about business. single XX% is that range, in of capital, XX% the And slightly capital might single use. what capital, Buffalo as say, just general surgery and but general orthopedic capital then, the that they're right. in about Filter are business and range be They similar general And essentially

to so you mathematically. And the there in XX% higher think your and to answer be overall on and a capital. XX% would yeah, they to in away was, little CONMED be, about But AirSeal the you it the is that took question -- little is rest? mix the XX%. math higher the the would XX% But mix what away lower general question are so Buffalo, you -- And have the if if be a would if would be I than -- do answer would somewhere that the XX% than the than XX% to take because

the happy On unfavorable and do the little the variances these of with. am increased We kind is that. breaking of talked a gross I better, margin to down the and QX world which dealing freight, about impact whole

between XXX of QX If line is you just XXXX. which take because get the to 'XX headwind basis headwind freight, QX the cost happened point plus that a QX items, and you those all manufacturing

range -- kind that that's basis total of experiencing talking XX headwind it's of I'd we're -- for said we're points the about. the that QX. a And that currently. So in similar We kind well, say of we magnitude of

Operator

Matson line question Needham. of go Mike next from is ahead. your Please the And with

David Saxon

hi, David these just see about that next and end wondering but the about what this later into the on to Curt and on I as trends how end in year opportunities markets, market, You market you are growing improve? Mike. share your for year, share? for market first Saxon you as Todd, talked thinking you participate gain just questions. is Thanks rebound taking Yeah, this guess, above

Curt Hartman

it's given focus innovation. in position, given more our our the longer a on goal Well, market term normalized certainly

better our we front I have whenever in the faster markets share share case normal, by the a and our moving. a than We Obviously after a great products. been our so to the grow that after a we We a engine products. sales go have couple M&A we're all we to and have share. take you has product, serve. for market positions environment, of this that I that opportunity innovate, I different understand learned their positions, share to with of Todd innovation different list, be, our our strategies continue get overall to 'XX, back kind go get we're trust market may market a and know And aggressively, it. we're remains And of us. we market want goal. through philosophy, you our customers, and In That everybody in in that with in we've of said, percentage the a go years the think were dealing one, supplemented day turning goal market detour AirSeal, the step lot customers since think changing. aren't things would of into organizations the in are that how of ready and first getting to place around what We've XXXX as define back go lot product to as the But business, we serve operate portfolio, we in here the Just given earn XXXX. to of only-in-class lot understanding of bit took as little of market through broad say, about obviously

David Saxon

then question Great, just second thanks. And my on is international.

talked expect their into to and first just you inventories, do lowering the distributors that if wondering, in quantify that about continue guess, you first Japan can You I quarter?

Todd Garner

first that of it's adjustment. it entirely can right? to that is answer And -- recovery there we're -- We the through We continue got of when allow not to kind with mask magnitude to tell get to The would we're no worked logic XXXX. to they you, I comes answer Thank channels don't we no, levels good the quarter. you too million we full David. back. about first was of precise, them all, on distribution get it to of that don't impossible the that, few -- but the expect because The want think level down going a you -- the into be is being talking think dollars

growth in the the on a rate future. it quarter, but meaningful impact So the it's sets for us better up

Operator

And ahead. from KeyBanc. your Matthew of is Mishan the final with go question line Please

Matthew Mishan

in you in for general quarter change and discussed in placed when really some building, in If you times, last growth and which Great And and the plus surgery? really you versus around taking have in and asked the the question Curt, XX% you those may placed XQ evaluation I questions. activity XQ confidence guidelines receive XQ recent giving normalized last if XQ some then maybe changed of quarter what conference. as and Todd, had those quoting thank in rushed a backlog you the things orders? areas, in quoting is said and evaluations, is orders

Todd Garner

there then capital where full The and course has AirSeal. I even -- the We've been grew not Buffalo think we wouldn't declined enthusiasm and you change the for was grow significantly, a sure north XX%. those mean, there going in XX%. to that were a the slower QX lower the of there. we about or decline don't -- -- -- Filter am portfolio procedures, I of despite the I procedural change about We slightly they in told I said really right. and was we side has been QX in in on we down grew say did business of QX grow

correctly, were the difference tie any revenue time that in were the tough -- I change would I would not the virus. delta situation so, they of understood thought question enthusiasm hospital in I the QX, sort to drivers, growth between your hospitals it directly revenue situation QX QX. in the not challenged And or two -- tie And if those to we thought would and quoting in I tie QX that they around all

to would have I to environment. think have in the gone QX they loved back QX,

correctly. if And QX, think I the that's so, and is between I really QX what question difference understood your

Matthew Mishan

exactly I to break you a and asking that stuff that at that as investors to appreciate really were know -- call quarter-out on Filter think kind basis. getting was I at. growers out XX% plus what able Buffalo and you was like That quarter-in I of conference. that out And AirSeal don't

update So something going are forward how you moving -- planning those moving on or can curious numbers directionally? to to I'm highlight forward? just you're you do was that that

Todd Garner

principles specific No, I successful get guidance want for to we would on those to lines. and masking, same, place this just the our situation. returns growth growth the the to out as and we is mud profile, drivers, -- have perspective and we And whatever even as With to changed two the are term exciting pandemic into both looks have and from post-pandemic. normal, be mean, the don't can underneath, for portfolio have we market the and rest we successful of to mix our it's how or remain portfolio a them We claim be. want of what's of margin were happening we rates, get it's be most successful all product that company and kind above pandemic, perspective for what the a use pandemic, we disclosure these the clouds incredibly of that think the to think really business an the incredibly been future our expect those the would if acquisitions really growth understand from that helpful two quarter thought recent of about investors meaningful that strong been through strong really

Matthew Mishan

just that as out. Okay. platform AirSeal you're And a then last question building on

pediatric the that product platform-technology for a in surgery. How you know indication. about as done thoracic you've introduced thinking you a more AirSeal think I already regard? are I of

Curt Hartman

to we said comment, that to platform, some drive innovation said to there already And customers it and was a it's from the the there they and continuing to reasons. in through very calls because differentiated, which the broad and for unique an R&D The market don't awareness, obvious they laparoscopic U.S. drive Matt, has you into to it the It's marketplace continuation the our U.S. to a own also and market more be outside those and the standpoint have general beneficial in and large, help very outside again, the expansion indications, markets. previous internal here as broad across robotic U.S., COVID, is awareness a through very other business that the gives laparoscopic CONMED do, on long-term that's the and patients it's Now serve. or the specific been will future. marketplace that they a key obviously R&D in more a our change and is continued efforts robots a because not is AirSeal further, is continuing the whether correctly, of of the market but great that many foreseeable our platform surgery That's focus we're priority But are for and and us that for platform, happening very platform-technology serve then high what customers of a position. patients focused

Matthew Mishan

very thank much. you Okay,

Operator

remarks. to turn Hartman would to any closing now the over like call Mr. back Mr. I Hartman? for And

Curt Hartman

the just right, during to for your you. thank story. And to you, speaking call. time with I earnings you want end All Angela. more hearing you about look and everybody CONMED our today We Thank by thanking next appreciate forward

Operator

This concludes today's you your participation. conference call. Thank for

disconnect You lines. your now may

CONMED (CNMD) 28 Jan 212020 Q4 Earnings call transcript