CONMED Corporation reported unaudited consolidated earnings results for the fourth quarter and full year ended December 31, 2015. For the quarter, the company reported net sales of $191,017,000 against $195,003,000 a year ago. Income from operations was $12,967,000 against $17,089,000 a year ago. Income before income taxes was $11,389,000 against $15,550,000 a year ago. Net income was $7,852,000 or $0.28 per basic and diluted share against $11,339,000 or $0.41 per basic and diluted share a year ago. Adjusted operating income was $22,207,000 against $22,389,000 a year ago. Adjusted net income was $14,459,000 or $0.52 per diluted share against $14,731,000 or $0.53 per diluted share a year ago. EBITDA was $24,390,000 against $28,657,000 a year ago. Adjusted EBITDA was $35,286,000 or $0.60 per diluted share against $35,213,000 or $0.61 per diluted share a year ago. For the quarter ended December 31, 2015, domestic sales, which represented 51.1% of total revenue, decreased 0.9%, as growth in Orthopedics was offset by declines in General Surgery and Visualization. International sales, which represented 48.9% of total revenue, declined 3.2% compared to the fourth quarter of 2014 on a reported basis. Foreign currency exchange rates, including the effects of the FX hedging program, had a negative impact of $3.9 million on fourth quarter sales. In constant currency, international sales increased 2.1% versus the prior-year period. Cash from operating activities totaled $9.3 million for the fourth quarter of 2015 compared to $25.6 million a year ago. The reduction in opening cash flow was due to low inventory build during the quarter.

For the year, the company reported net sales of $719,168,000 against $740,055,000 a year ago. Income from operations was $51,175,000 against $52,786,000 a year ago. Income before income taxes was $45,144,000 against $46,675,000 a year ago. Net income was $30,498,000 or $1.09 per diluted share against $32,192,000 or $1.16 per diluted share a year ago. Net cash provided by operating activities was $48,068,000 against $65,176,000 a year ago. Payments related to business and asset acquisitions were $9,353,000 against $5,265,000 a year ago. Purchases of property, plant, and equipment were $15,009,000 against $15,411,000 a year ago. Adjusted operating income was $75,389,000 against $82,360,000 a year ago. Adjusted net income was $46,688,000 or $1.68 per diluted share against $53,378,000 or $1.92 per diluted share a year ago. EBITDA was $94,460,000 against $97,936,000 a year ago. Adjusted EBITDA was $125,152,000 or $1.98 per diluted share against $132,929,000 or $2.22 per diluted share a year ago. For the fiscal year ended December 31, 2015, domestic sales, which represented 50.3% of total revenue, increased 0.5% and were driven by increases in capital equipment sales across all businesses. International sales, which represented 49.7% of total revenue, declined 6.0% compared to the same period a year ago on a reported basis. Foreign currency exchange rates, including the effects of the FX hedging program, had a negative impact of $22.9 million on fiscal year sales. In constant currency, international sales increased 0.1% versus the prior-year period.

The company forecasts 2016 sales to be in the range of $760 to $770 million compared to $719 million in 2015. This revenue forecast includes constant currency organic sales growth of 1% to 3%, sales related to the SurgiQuest acquisition of $55 to $60 million and the negative impact of foreign exchange of $21 to $23 million. Beginning in 2016, the company will exclude amortization of intangible assets from its adjusted earnings per share. Adjusted diluted cash earnings per share for 2015 would have been $1.98 if amortization of intangible assets were excluded. Based on 2016 revenue of $760 to $770 million, the company forecasts 2016 adjusted diluted cash earnings per share to be in the range of $1.85 to $1.95. The adjusted diluted cash earnings per share estimates for 2016 exclude the cost of special items including acquisition costs and restructuring costs which are estimated to be in the range of $18 to $20 million, net of tax, and amortization of intangible assets estimated to be in the range of $14 to $16 million, net of tax. The anticipated medical device tax for 2016 had been approximately $4.5 million.