ConMed continues debt reduction, eyes operating margin goal of 14%

By Lisa Kerner

Charlotte, N.C., April 3 - ConMed Corp. is making progress on debt reduction, president and chief executive officer Joseph J. Corasanti said during a presentation at the 11th Annual Needham Healthcare Conference New York on Wednesday.

At Dec. 31, ConMed had $26 million of cash on the books and total debt of $143 million. Its debt-to-capitalization ratio was 20%, compared with 25% about one year ago and 50% to 60% 10 to 12 years ago, Corasanti said.

"We have done a very good job of deleveraging this company," Corasanti said.

For 2011, ConMed had $725 million of sales, $85.4 million of free cash flow and $103 million of cash flow from operations.

The company typically launches 10 new products each year and strives for 5% annual organic growth.

According to Corasanti, ConMed moved some products to Mexico and consolidated factories in an effort to reach its goal of attaining an operating margin of 14% in the next three to four years. ConMed ended 2011 with a 10% operating margin.

ConMed is a Utica, N.Y.-based medical technology company specializing in medical devices for surgical and patient monitoring markets.

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