CONMED Corporation (NYSE:CNMD) Q3 2023 Earnings Call Transcript

Todd Garner: So normally it’s one, in one direction or the other, right? And we always – when it’s one, we say we use a 100 basis points to 150 basis points. The math would be a little more than that, Kristen. Our quarters are usually either 62 or 64 days, somewhere in that range, right? So if you take a day on 64 or a day on 62, you’ll get more than 100 basis points to 150 basis points. I think we’re a little conservative on that just because, if there’s an extra holiday, surgeons kind of work around that, and it’s complicated because you’ve got every geography in the world with their own calendars, and so we always think it’s, I think we’re a little conservative when it comes to taking credit for a day that didn’t happen, right?

Curt and I are both a little uncomfortable trying to be too precise with an adjusted number when it’s theoretical. And so then when you add in this quarter where it rounds to two days across all the geographies and how it all adds up, I think we, again, I think what I’d tell you is when we talk about one day, we say 100 basis points to 150 basis points. When it gets to two days, I’d probably add a little more fudge factor, because I do think that hospitals and physicians do kind of adjust their schedule around holidays and disruptions and things like that. So I think things do get done generally in the quarter that they would have gotten done, but obviously more sales days is better than less, and the opposite is true. So I think that’s as much help as I can give you.

We would never get too precise on a sales growth number you should actually use or think about when it’s kind of theoretical.

Kristen Stewart: Okay, that’s helpful. And then just a big picture question that’s been talked a lot about by other companies, but can you guys give us your thoughts on GLP-1s and any potential impact on your business?

Curt Hartman: Certainly a widely discussed and debated topic, and I look at the specialties that we service, and I just don’t see it having a material impact on us. I honestly think over time you could have large BMI patients who lose body mass and become more active, and they wind up as sports medicine candidates. We are in the GI space, but we’re in therapeutic GI. Those cases don’t change whether you’re large or thin. Our advanced surgery case load is, you’re still having gallbladder removals whether you’re large or thin. So I just don’t see it impacting us, maybe on the margins and maybe over time, but it’s not going to be a light switch event based on my estimates. I think that’s just how I see it right now.

Kristen Stewart: Okay, thanks very much.

Curt Hartman: I don’t want to be naïve to the topic, but I just, talking with various people I just don’t see the impact.

Operator: Thank you. Our next question comes from the line of Carolyn Huszagh of Bank of America.

Carolyn Huszagh: Yes, hi there. This is Carolyn on for Travis. Thanks for taking my question. Just one for me on FX. [indiscernible] stay where they are today, just how should we think about where to dial in FX for next year on revenue margins, EPS? Thank you.

Todd Garner: Yes. Thanks, Carolyn. I’m sure that’s a question everybody would like an answer to. We’re going to talk about FX in January. I’m not nearly as concerned about it this time, this year as I was.